A natural and artificial flavor is a flavor that is created through the combination of both natural and artificial flavors (as designated by the FDA). In general, a natural flavor is one derived from typical food sources whereas an artificial flavor is created from other materials. Vanilla extract is the essence or flavor extracted from vanilla beans. It is used in desserts, baked goods, and beverages, primarily. Caramel color is a dark-brown liquid produced by heat-induced caramelization of carbohydrates.