The potato industry is expanding their lines of products to respond to the opportunities for value added products and the changing needs of society. Colored potato varieties, such as red- And purple-fleshed potatoes, can capture new market demands for product extensions that will provide new flavors, exotic colors and premium natural products for consumers. The potential application of colored-fleshed potato cultivars as source of natural colorants and for manufacture of colored snacks will be discussed. Qualitative anthocyanin composition, pigment content and phenolic composition were screened on 33 cultivars. Red-fleshed potato extracts imparted desirable orange-red color and adequate stability and may serve as alternative sources of natural food colorants. Glycoalkaloids (SGAs) in color extracts were detected by ESMS. Alkaline treatment precipitated ∼90% SGA with minimal anthocyanin degradation. Growth conditions and location impact anthocyanin and SGA accumulation in tubers. Frying of colored potato slices yield chips with bright attractive color ranging from light pink to dark red and pleasant flavor. Factors that will affect the quality of chips include reducing sugar and amino acid levels and processing conditions, influencing color development and the formation of the potentially toxic acrylamide. Current activities are dealing with the antioxidant capacity and health benefits of anthocyanin-containing products. There is a great opportunity for expanding the market of snacks through novelty chips with added value. © 2008 American Chemical Society.