When leafing through my grandmother’s yellowed recipe cards recently, I kept encountering an ingredient called “Oleo.” This mysterious ingredient appeared in everything from cookie recipes to savory dishes. If you’ve ever wondered “what is Oleo in old recipes?” you’re not alone. Oleo is simply an old term for margarine that was commonly used in recipes from the 1930s through the 1970s. Today I’ll explain everything you need to know about this classic ingredient and what to substitute when you find it in vintage recipes.

Table of Contents
Quick Facts About Oleo
- Modern Substitute: Butter or modern margarine
- What Is It: An outdated term for margarine
- Origin: Derived from “oleomargarine”
- Common In: Recipes from 1930s-1970s
What Exactly Is Oleo?
Oleo is an abbreviated term for oleomargarine, which was the original name for margarine. This butter substitute was first created in 1869 by French chemist Hippolyte Mège-Mouriès during the Franco-Prussian wars. He developed this product in response to a competition sponsored by Napoleon III’s government, which was seeking a cheap and stable butter alternative during wartime shortages.
Early oleomargarine was made primarily from beef fat (tallow) mixed with milk and salt. This creation earned Mège-Mouriès a significant prize from the French government and ultimately led to the global spread of margarine.
The Fascinating History of Oleo
Original White Appearance
One of the most interesting aspects of early Oleo was its appearance. Unlike the yellow margarine we know today, original Oleo was white – nothing like the butter it was meant to replace. Manufacturers included a small capsule of yellow food coloring that homemakers could mix in if they wanted their margarine to resemble butter.
Why was Oleo white? This wasn’t a manufacturing limitation but rather a legal requirement resulting from the fierce battle between the dairy and margarine industries.
The Butter vs. Oleo War
The dairy industry viewed Oleo as a direct threat to their business and lobbied extensively for restrictions. Their efforts resulted in remarkable legislation across the United States:
- Wisconsin (the “Dairy State”) and six other states made margarine completely illegal
- Three states required margarine to be dyed pink to distinguish it from butter
- Federal taxes were imposed specifically on colored margarine
- Many states prohibited margarine from being colored yellow
These restrictions remained in place for decades, with the last color ban not being repealed until the 1960s. Home cooks often had to mix in the yellow coloring themselves to avoid the taxes and restrictions on pre-colored margarine.
Evolution of Ingredients
While early Oleo was made from animal fats, manufacturers eventually shifted to using vegetable oils:
- 1930s-1950s: Transition to cottonseed and soybean oils
- 1950s-1970s: Further refinement with partially hydrogenated oils
- 1980s-Present: Reformulations to address health concerns about trans fats
How to Substitute for Oleo in Old Recipes
- When you encounter Oleo in vintage recipes, you have several options for substitution:
- Oil: In some baking recipes, an equivalent amount of vegetable oil works
- Butter: The most direct replacement with a richer flavor
- Modern Margarine: For a closer match to the original recipe
- Plant-Based Butters: For dairy-free versions of classic recipes
What’s the Difference Between Oleo and Butter?
The main differences between Oleo (margarine) and butter are:
- Source: Butter comes from dairy cream, while Oleo is made from vegetable oils
- Fat Content: Butter contains at least 80% butterfat, while margarine has a similar fat percentage but from plant sources
- Flavor: Butter has a richer, more distinctive flavor
- Melting Point: Butter melts at a lower temperature than most margarines
- Health Profile: Butter contains saturated fats and cholesterol, while modern margarines vary significantly in their nutritional profiles
Tips for Using Vintage Recipes with Oleo
When working with older recipes that call for Oleo, consider these tips:
- If the recipe is from before the 1950s, it was likely developed with a different texture and flavor profile than modern margarine
- Baked goods made with butter instead of Oleo may brown more quickly
- Butter will impart a richer flavor that may alter the original taste slightly
- Reduce salt slightly if switching to salted butter in a recipe calling for Oleo
The Legacy of Oleo in American Cooking
Oleo represents a fascinating chapter in American culinary and economic history. Its popularity peaked during the mid-20th century, when convenience foods were widely adopted and the nutritional understanding of different fats was not yet well established.
Today, Oleo primarily lives on in vintage recipes and as an occasional crossword puzzle answer. While margarine is still available, many cooks have returned to butter for its flavor.
Continue Reading Those Old Recipes
So, the next time you read an old recipe and see an ingredient called Oleo, you won’t have to wonder what it is anymore. You’ll know that Oleo is just an old word for margarine and you can swap it out for butter.
Of course, your kids will miss out on the fun of adding in the yellow coloring!
Recipe Recommendations: Classic Recipes That Called for Oleo
Looking to try some vintage recipes that originally used Oleo? Here are some classics where you can substitute butter or modern margarine:
What’s your source for saying Oleo was a brand name for a margarine? I can find no other claims of it being a brand name.
There was a brand of Oleo called Golden Bar Oleo, I will email you a copy of the grocery ad that I have.
We grew up in Wisconsin where oleo was illegal back in the 50s. Grandpa and grandma would make a “run” to Illinois every few months and come back with several cases of oleo. At a family gathering this booty would be divided up among family members. Oleo was way cheaper and most of us could not tell the difference when cooking or baking from butter.
My grandma sent me and my dad to the store with a shopping list that said “oleo.” When we came back empty handed she couldn’t believe we didn’t know that oleo was margarine. It hasn’t been called that since Kennedy, grandma!
I have a frosting recipe of my mom and grandma that is really fussy. You have to beat it for 15 minutes and butter doesn’t work as a substitute. Margarine used to work but they keep changing the formulas/ingredients so I can’t find anything that will make this frosting stay together. It gets watery and clumpy instead of creamy and fluffy.
Does ANYONE sell an old formula of Oleo? Is there a copycat way to make it myself???
I would try a generic margarine if store still sell that.
I read somewhere oleo/margarine is one (1) molecule away from being plastic…… yum!
You might try 1/2 margarine, 1/2 Crisco
Sounds like you should try tallow or suet, if you really care to go to that much looking. Crisco would be worth a try. Perhaps lard. (But lard is not of the quality it once was.)
I have these ideas in mind because tallow and suet (and lard) make superior crusts (and fat-based puddings), and that may also be the secret for the frosting.
We do not feed stock animals the same diet as at one time. I suspect we are no longer producing the same quality of animal fats as in the past. I think this is particularly the case with schmaltz, that is chicken fat.
I would try butter flavored Crisco.
Just stumbled across this article and OMG I remember when my mother always used white oleo. It would be my job to mix the colouring into the oleo so it would look like butter. I wonder now what was in the colouring?? I’m sure it was good for you 😉
It was carrot based.