Here’s the true story behind this beloved “Southern” ingredient.

Almost every recipefrom her mama’s homemade yeast rolls to her back-pocket chocolate cakecalled for oleo.

But what is oleo and why is it in so many recipes?

illustration of oleo margarine package

Credit:Kendyll Hillegas

I remember asking my mom what oleo was, and she said it was like butter.

Turns out she was right on target.

Here’s the story behind oleo.

What Is Oleo?

You may know oleo by its more modern (and original) namemargarine.

Simply put, modern-day oleo/margarine is abutter substituteoften made from plant-based oils.

Where Did Oleo Come From?

Ironically, we have the butter-loving French to thank for the creation of oleo.

When it came to the U.S., the Oleo-Margarine Manufacturing Company was born in New York.

What’s The Difference Between Oleo And Butter?

Whilebutter and margarine, or oleo, have similar flavors and uses, they have different ingredients.

Butter is a dairy product made from cream or milk.

To make it, the cream is churned until it separates the fat from the milk.

The separated fat is the spread we know as butter.

It also contains water and milk proteins.

Butter is sold in sticks.

Margarine has very little dairy.

For completely dairy-free margarine, look for vegan versions.

This comes in spreadable tub form or in sticks like butter.

Can You Buy Oleo Today?

What’s Better: Oleo Or Butter?

When it comes to baking and cooking, theSouthern LivingTest Kitchen willpick butterevery time.

We think it helps baked goods brown better, and we find the flavor to be superior to margarine.

Spreadable margarine is also not recommended for baking because the texture and ingredients are different.

It has more water than butter and can affect the moisture of your finished cake.

But there’s no reason you’re free to’t top awarm biscuitwith a pat of margarine.

Healthwise, margarine is a better choice.

What Can Be Substituted For Oleo?

If your grandmothers recipe calls for oleo, you might make it the way Grandma didwith margarine.

Or you’re able to substitute butter or shortening in its place.

Mayo Clinic.Mayo Clinic Minute: Butter versus Margarinewhat’s the healthier spread?