"To offer some explanation of how this toy came to be, initially it was designed with one balloon with a 'K' on it. However, two more were added to provide a more robust structure, as the safety and quality of our toys is of the utmost importance.
"We had absolutely no intention to make associations with the Ku Klux Klan and we truly apologise to our consumers for any unintentional offence caused. We do not support this organisation in any way. The K on the balloons was solely meant to represent Kinder."
The toy has been discontinued.
Despite backlash from disgruntled parents, many others backed Kinder Surprise saying those who are offended need to "get over themselves".
"Are you kidding me, the K on the balloons would stand for Kinder, my god the over sensitive people need to get a life," one person wrote.
Another said: "K for Kinder. If you take offence over it well it's your problem only. No racism here! This world has become so sensitive, nobody can do anything without it getting twisted into some other meaning. Grow up, people. Stop been sooks about everything."