This means house made by sugar and sweets, like the Grimm Brothers tale "Hansel and Gretel". The story of this name is also sweet and tender.
Once upon a time in one of our family walks, when my son Panayotis was 3-4 years old, I told to him, that one pink house into the magical Tsagarada's forest was the Hansel and Gretel's Caramel house. And in his child's mind it was absolutely possible... Now, Panayiotis is co-manager of that particular account. And our pink home , is our own Caramelospito!