In the late 1920s the dairy industry had a fight on its hands.
Vegetable alternatives to dairy butter were being invented and the word "butter" was being used to promote the products.
An article in The Camperdown Chronicle about a butter alternative on Saturday, May 24, 1930, said "the Queensland Butter Board and the Department of Agriculture and Stock objected to the application of the word butter to the product".
"A result of the new product was that peanut butter no longer existed in Queensland," the article continued.
"When government officials … declared that this [vegetable alternative to butter] could not be termed butter. They had to confess, too, that peanut butter was not peanut butter, so now it was peanut paste."
According to the Australian Food Timeline, the ban spread to South Australia and Western Australia, but in New South Wales, Victoria and Tasmania peanut butter remained in use.
A photo of a tram advertising ETA Peanut Paste in Queensland in the 1930s. Supplied: Brisbane City Council
A van in Western Australia advertising Sanitarium Peanut Paste. Supplied: Sanitarium
An ad for ETA Peanut Paste published in the Warwick Daily News in October 1930. Supplied: Goodman Fielder
A Sanitarium spokesperson confirmed the term peanut paste was used in Western Australia, South Australia and Queensland from about 1929/1930.
"Sanitarium began labelling peanut butter as peanut paste in 1930," a spokesperson said.
"By the 1970s, product labelling had changed back to peanut 'butter' [however] colloquially, in various states, it has continued to be referred to as peanut paste."
The name change was reflected in advertisements, with the product promoted as "peanut paste" in affected states, while some national advertisements said "peanut butter (known in some states as peanut paste)".
A co-host of food fact podcast Ingredipedia, Emily Naismith, recently uncovered the paste vs butter food fight when researching an episode on peanut butter.
"I couldn't believe it," she told ABC Radio Melbourne Evenings.
"It is so odd that there would be a statewide ban on the name 'peanut butter', which is so everyday and synonymous."
She has since discovered her grandpa worked for a peanut butter producer in Victoria in the 1960s and 1970s.
He remembers how they produced "peanut paste" labels for Queensland, with peanut butter labels going to other locations.
"He said it was incredibly annoying," she said.
While Ms Naismith admits the term peanut paste makes sense, she says peanut butter sounds more appealing.
"To be honest, [peanut paste] makes me think of toothpaste."
Peanut butter 'doesn't make sense'
Fred Humphries, who grew up in Brisbane in the 1960s and 1970s, said he clearly remembered the product being called peanut paste.
It was when he moved to Canberra, aged 17, he found everyone calling it peanut butter.
"I thought it was strange calling it peanut butter — it didn't make any sense to me," he said.
"To me, butter is something you put on your toast before your vegemite."
Mr Humphries still calls it peanut paste on occasion, and says he would be happy for the paste name to be reinstated.
Double take
Victorian Simon Burge was previously married to a Queenslander.
He said his then mother-in-law offered him a peanut paste sandwich.
"I said what on earth is peanut paste?" he said.
"It was obvious she meant peanut butter but hearing it your mind just does a double take."
His in-laws were similarly curious as to why Mr Burge called it peanut butter.
"They hadn't heard it before," Mr Burge said.
"People in North Queensland call lots of things differently, I didn't realise [the term peanut paste] was more widespread."
