Epicoccum nigrum MIUG 2.15 produces in high concentration a combination of yellow food-grade pigments (i.e. carotenoids and flavonoids in a ratio of 20:1) by solid-state fermentation on maize and molasses based media. By exposing the parental strain to a chemical mutagen, N-methyl-N’-nitro-N-nitroso-guanidine, a mutant strain was obtained, that produces equal shares of flavonoids and carotenoids (i.e. 1:1) in a red pigment complex. UV-VIS spectrometry and HPLC analysis show a major content of glycosylated flavonoids and free phenolic acids, and also conjugated carotenoids, especially rhodoxanthin. The extracts may be used as red food colorants with functional properties.