With peanut butter’s growing popularity in the 1950s, poor-quality products flooded the markets, hoping to cash in on the new food trend. Companies used cheaper hydrogenated oils instead of the more expensive peanut oil, and used glycerin as a sweetener.
The United States Food and Drug Administration (FDA) found that some products labeled as “peanut butter” only contained 75% peanuts. The FDA proposed a standard of 95% peanuts in peanut butter in 1959. Manufacturers did not like this – arguing that customers preferred a more spreadable, and sweeter, product. The spreadable-ness of peanut butter became the focal point of a 12-year “Peanut Butter Case” which wound its way through the American legal system.
To compromise with the manufacturers the FDA initially agreed to lower its peanut butter standard to 90% peanuts. The manufacturers wanted 87% and when the FDA did not budge they took it to court. After too many years and a US Appeals Court appeal, the 90% peanut standard was upheld.