Google finds terms and phrases to associate with entities that can be considered terms of interest for businesses, locations, and other entities. These terms can influence what shows up in search results and in knowledge panels for those entities. Consider it part of a growing knowledge base of concepts, entities, attributes for entities, and keywords that shape the new Google after Hummingbird. Semantics play a role as things that specific entities are known for are identified.
For example, the Warrenton, Virginia, Red Truck Bakery (local to me) is known for: