What Exactly is Vegemite? A Quick Dive into Australia's Iconic Yeast Extract Spread

Mention Australian cuisine to anyone, and Vegemite is sure to come up in the conversation. This dense, dark paste evokes strong opinions—some love it, while others can't stand it. Yet, despite its fame, many outside Australia remain clueless about its true nature. Curious about its ingredients and origins? Here's a concise look at the history of this divisive yet beloved Australian staple.

Defining Vegemite: What Makes It Unique?

Long before Vegemite (pronounced "veh-juh-mite") came into existence, Marmite was the go-to spread. This British staple originated from the experiments of German scientist Justus Von Liebig, who discovered a nutrient-rich paste using leftover brewer's yeast from beer production in the late 1800s. Once considered waste, this sticky residue was found to contain living, single-celled organisms thanks to advancements in cellular research. Yeast, a microscopic fungus, feeds on sugars and produces alcohol, flavor compounds, and carbon dioxide through fermentation, making it vital for beer recipes. Packed with B vitamins, Von Liebig’s creation offered a convenient way to harness these nutrients. The yeast extract also boasted a rich umami flavor, known as the “fifth taste,” reminiscent of savory foods like meat and soy sauce, despite being entirely plant-based.

This miraculous food had immense potential, but it wasn’t introduced to the public until decades after Von Liebig's passing. In 1902, the Marmite Food Company was established in Burton-upon-Trent, Staffordshire, England, with their yeast-based spread as the flagship product. (The yeast was sourced from the nearby Bass Brewery.) The thick, dark paste quickly won over British taste buds, and as its nutritional benefits became more widely recognized, Marmite’s fame soared.

Marmite wasn’t just a hit in Britain—Australians also embraced it in the early 1900s. However, when World War I disrupted shipping, cutting off the supply, Australian businessman Fred Walker tasked chemist Cyril Callister with creating a local alternative. Callister dedicated months to transforming brewer’s yeast into a flavorful and nutritious substitute for the Fred Walker Company (now part of the Kraft Food Company). By 1923, five years after the war ended, he introduced his “Pure Vegetable Extract” to the public.

To generate buzz for the new product, Walker organized a contest inviting the public to suggest names for the spread. The winning entry, chosen at random by Walker's daughter, was Vegemite—a name that would soon become iconic, at least for a time.

Vegemite Under a Different Name ...

When Vegemite finally hit the shelves, Marmite had already made its way back to Australia and reclaimed its position as the nation's top choice. Determined to revive interest in his yeast-based product, Walker rebranded it in 1928 with a new name and slogan that played on the competition between the two spreads. The new label, "Parwill," was a pun on the phrase, “If Marmite, Parwill!” Unfortunately, the awkward wordplay failed to boost sales as expected, and the original Vegemite name was quickly restored.

Walker’s next marketing strategy, however, proved successful. Shortly after Vegemite reclaimed its name, Walker acquired the rights to distribute Kraft’s processed cheese in Australia. He cleverly paired the cheese with Vegemite, offering free jars of the yeast spread with every Kraft product purchase as part of a promotional campaign. The strategy paid off—Vegemite sales surged, and by 1935, the company was sold to Kraft. Like Marmite, Vegemite gained recognition as a health food, solidifying its place in households. In 1939, the British Medical Association officially endorsed it as a rich source of vitamins and nutrients.

When World War II erupted, Marmite once again disappeared from Australia, and Vegemite became a staple in soldiers' rations. The brand even embraced the wartime slogan, “Vegemite: Keeping fighting men fighting fit.” Since then, Vegemite has remained a proud symbol of Australian identity.

Despite its strong association with Australia, Vegemite was technically owned by American companies, first Kraft Foods (and later Mondelez International) from 1935 until 2017. That year, the Australian dairy company Bega acquired the brand from Mondelez, along with most of its grocery and cheese products in Australia and New Zealand. This marked the return of the iconic spread to the country that truly understands and cherishes it.

Vegemite Isn’t Universally Loved

Reports suggest that nearly 90 percent of Australian households keep a jar of Vegemite in their pantry. Outside Australia, however, it’s often seen as either a quirky novelty or the butt of jokes. During a 2011 visit to Australia, former U.S. president Barack Obama famously mocked the spread, calling it “a quasi-vegetable-byproduct paste” after declaring it “horrible.” Vegemite has also been the subject of jokes on late-night TV and viral videos. (The clip above, with over 7.8 million views, shows non-Australian kids trying Vegemite for the first time—with predictably hilarious results.)

Australia’s fondness for Vegemite likely stems from acquired taste. Humans aren’t naturally inclined to enjoy many foods, and preferences develop over time through repeated exposure. While someone raised in a Vegemite-filled household (i.e., most Australians) might crave it, a first-time taster is more likely to recoil. As a result, roughly 98 percent of Vegemite production stays in Australia, with only about 2 percent exported internationally.

What Goes Into Vegemite?

The exact recipe for Vegemite is a closely guarded secret. The producers of Vegemite remain tight-lipped about its ingredients but insist the formula hasn’t changed since Cyril Callister’s original version. While the precise details are unknown, the primary components include yeast extract, salt, and extracts of celery and onion for flavor.

How to Enjoy Vegemite

Australians typically enjoy Vegemite on toast or crackers. It can be spread on a single slice of bread or used to make a Vegemite sandwich, famously referenced in the Men at Work song “Down Under.” Pairing it with rich accompaniments like butter, cheese, avocado, or eggs helps balance its intense, slightly bitter taste.

No matter how you choose to eat it, always apply Vegemite in a thin layer. Many first-timers dislike it because they use too much, amplifying its bitterness. Australians understand that its bold flavor is best enjoyed in small amounts.