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Why Some Peanut-Butter Jars Are Labeled “Spread”

By Drooid · · How we work

What the FDA Requires for Peanut-Butter Labeling

The U.S. Food & Drug Administration (FDA) defines a product as “peanut butter” only if it contains at least 90 % peanuts and does not exceed 55 % fat. When a product falls short of the 90 % peanut threshold, the agency mandates that the word “spread” appear on the label. This rule also applies when manufacturers add non-peanut oils, such as palm oil, even if the peanut content remains at 90 % or higher.

Historical Development of the Standard

The regulation emerged from concerns documented in a 1959 FDA press release, which noted that some “peanut butter” products had reduced peanut content by up to 20 % through the substitution of cheaper hydrogenated or vegetable oils. In response, the FDA proposed a new standard in the early 1960s that would preserve the 90 % peanut requirement while allowing limited sweeteners. Three major brands—Skippy, Jif, and Peter Pan—participated in a twenty-week public hearing to shape the final rule. An U.S. Appeals Court later affirmed the FDA’s standard, cementing the 90 % peanut and 55 % fat limits.

How Brands Respond: The Case of Skippy Natural Peanut Butter Spread

Skippy’s “Natural Peanut Butter Spread” includes palm oil and other non-hydrogenated oils. The company’s website explains that such spreads may still contain at least 90 % peanuts, but the added oils place them outside the FDA’s strict definition of “peanut butter,” requiring the “spread” label. The site also notes that glycerin can be added to prevent oil separation, but the FDA would require prominent labeling if glycerin were used without rendering the product adulterated.

Consumer Implications

For shoppers, the “spread” designation signals the presence of additional oils or ingredients beyond peanuts. While the product remains a peanut-based food, the label helps consumers differentiate between pure peanut butter and formulations that incorporate other fats, which can affect texture, flavor, and nutritional profile. The FDA’s labeling rule thus serves both a regulatory purpose—preventing misleading claims—and a practical one, giving buyers clearer information about what they are purchasing.