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The firms are changing the way they make their caramel colouring to reduce levels of 4-methylimidazole a chemical which can be formed during the cooking process. It is also found in trace amounts in many foods.
But California has added the colouring to its list of carcinogens based on a single study on lab mice and rats. There is no research to suggest it causes cancer in humans.
The American Beverage Association said its member companies will continue to use caramel colouring but that adjustments were made to meet California's new standard.
In a statement, the association said, "Consumers will notice no difference in our products and have no reason at all for any health concerns."
Coca-Cola spokeswoman Diana Garza-Ciarlante said, "While we believe that there is no public health risk that justifies any such change, we did ask our caramel suppliers to take this step so that our products would not be subject to the requirement of a scientifically unfounded warning."
The changes have already been made for drinks sold in California. The companies said the changes will be expanded nationally to streamline their manufacturing processes.
Coca-Cola and Pepsi account for almost 90 per cent of the soft drinks market. The Center for Science in the
Public Interest, a consumer advocacy group, filed a petition with the US Food and Drug Administration in February to ban the use of caramel colouring.
A spokesman for the FDA said the petition was being reviewed. But he noted that a consumer would have to drink more than 1,000 cans of drink a day to reach the doses that have shown links to cancer in rodents.
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