SNACKS OF YORE
Pillsbury shocked many in the 60s when they had Chinese Cherry and Injun Orange in their Funny-Face drink line. I've seen the commercials with these characters in them as well. Both of the characters sound as awful as they look.
With no way to argue that these were justifiable, they were changed to Choo Choo Cherry and Jolly Olly Orange.
Though Ferrara Pan kept the slant-eyed cherry tradition alive well into the late 70s with their Cherry Chan candy. They tried to meet their opponents halfway by changing the name to Cherry Clan (probably the only time the word "clan" was added to be more politically correct), but the artwork changed little.
Eventually they changed the whole thing to Cherryheads, to tie in with their famous Lemonheads brand. At the same time, they changed Mister Melon to Melonheads, and the incredibly cool Alexander the Grape candy to Grapeheads.
But that's nothing compared to this candy! Yikes! Complete disregard for offending anyone of Asian descent here, eh?
Of course, Asians weren't the only ethnic group to get slammed with offensive foods. Let's not forget the Frito Bandito. Frito Lay introduced this fella in the late 60s. Though he was designed by animation legend Tex Avery and voiced by none other than Mel Blanc, the Bandito-Defamation League saw fit to toss him out on his ass. Decades later the all powerful Hispanic Mice lobby did the same with Speedy Gonzalez.
Sambo's restaurant was weird all around, however. As you can see from the picture above, there was nothing more than some happy Indian lad eating pancakes with a tiger by his side. But Sambo's roots in the story "Little Black Sambo" made it too sensitive of a character to last. The book, which featured a nappy haired black boy with stereotyped features, and parents named Black Mumbo and Black Jumbo, was offensive enough to eventually spell doom for the restaurant chain. Of course, blacks have been no strangers from offensive foods, with grinning characters from Cream of Wheat, Uncle Ben, and Aunt Jemima still happily serving white folks breakfast to this day.
There was also a popular diet candy called AYDS, who's claims like, "AYDS helped me lose 72 pounds" became too creepy to market anymore once AIDS made headlines.
But through the years, nobody's bothered to pull this candy off the market.