Vanilla is an extract of the vanilla bean in alcohol. The vanilla plant is a relative of the orchid, and originally, all extract was made from beans grown in Madagascar, but in recent years, Mexican vanilla has become more popular.
Most vanilla flavoring, however, is not vanilla but vanillin, a synthetic flavoring. Regular vanilla loses potency if it if heated in baking, or frozen in ice cream, but romantic purists think vanillin is too consistent to be an interesting flavor. Food companies appease snobs by making a deal about using real vanilla, perhaps including flecks of vanilla bean in their ice cream, and buttressing the vanilla taste with vanillin.
You can make your own vanilla extract by soaking vanilla beans in alcohol, preferably a "breathless" vodka.
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