American cheese is a type of processed cheese. It can be orange, yellow, or white in color, is mild, salty, and faintly sweet in flavor, has a medium-firm. Oct 18, There's no law that says Wisconsin cheddar has to be orange, but much of it is. While most cheddars coming from Vermont and New York are. That orange color is actually man-made. Cheesemakers add a vegetable dye called annatto to turn cheese orange. Annato does not affect the quality of the.