"Introduced in Australia in 1923, it's the oldest single ice cream in the Peters family still available today," the company website reads. "Try one for yourself and see why Australians have enjoyed this icecream for nearly 100 years!"
Lawrence Kaplan from the University of Alaska's Alaska Native Language Centre wrote that the term "Eskimo" is receding from common use, and was a "colonial" term.
"Although the name 'Eskimo' was commonly used in Alaska to refer to Inuit and Yupik people of the world, this usage is now considered unacceptable by many or even most Alaska Natives, largely since it is a colonial name imposed by non-Indigenous people," Kaplan said.
"Alaska Natives increasingly prefer to be known by the names they use in their own languages, such as Inupiaq or Yupik. 'Inuit' is now the current term in Alaska and across the Arctic, and 'Eskimo' is fading from use."
The US company said they'd "paused production" of the icecreams until the new icecreams were rolled out in 2021, according to CNN.
"Our mission at Dreyer's Grand Ice Cream is to bring joy to everyday life with icecream and we look forward to our Edy's Pie icecream bars continuing to do just that," Elizabell Marquez, the head of marketing for Dreyer's Grand Ice Cream, said in a statement.
The US company first announced its plans to change the name in June, amid heated protests across the country following the death of George Floyd.
The company at the time said they were "committed to being a part of the solution on racial equality".
News.com.au has contacted Peters for a comment but did not receive a response in time for the publication of this article.
in June, Kiwi ice cream manufacturers Tip Top said it would change the name of its controversial Eskimo Pie product, a move reflecting similar rebranding of the product in the US.
On the same day, New Zealand confectionary-maker Pascall has announced it will rebrand Eskimo lollies.
Tip Top first began making Eskimo Pies in the 1940s and it's still the top-selling multipack ice cream in New Zealand today.
Tip Top Director Ben Schurr said that since then, the name of the product had "changed meaning".
"We have been considering renaming this product and removing the Eskimo character from the packaging for a while now," Schurr said.
"We're making plans to put the changes in place over the next few months," he said in June.