Abstract: The invention provides a food additive prepared from refined and fractionated phospholipids containing at least 35% phosphatidyl choline and a ratio of 2:1 to 10:1 phosphatidyl choline to phosphatidyl ethanolamine which is complexed with water and vigorously mixed to form globular vesicles or liposomes. The aqueous liposomes are then used per se or mixed with food ingredients and/or with an edible reinforcing carbohydrate to form a suspension or paste which is added to the foodstuff. The liposome can replace some or all of the fat in the food as well as acting as a carrier, encapsulating agent, moisturizing agent, and depanner for foods.