Saputo Dairy Australia says, from July, the dairy products will be known as Cheer Cheese.
The change follows a 'careful and diligent' review to ensure the brand is "aligning with current attitudes and perspectives", the Canadian-owned company says.
It was originally named 'Coon' after American cheese pioneer Edward William Coon, who died in 1934, ABC reports. The brand name is also a racial slur for people with dark skin.
Saputo says the new name was chosen because it relects happiness.