An ingredient suitable for use in the manufacture of specialty margarines and bakery shortenings with nutritional and functional benefits is the reaction product of a phytosterol material esterified with a saturated fatty acid material. The reaction product is substantially solid at ambient temperature, and thus is suitable for use as an ingredient in solid shortening products, yet without the adverse health effects believed to be associated with saturated fatty acids. In the method of making the product, the esterification reaction is carried out at elevated temperatures, under vacuum, and for a relatively longer duration than prior art procedures. The esterification reaction may be carried out in the presence of a catalyst and optionally, high oleic canola oil. The reaction product is neutralized, then filtered at least once and preferably twice to remove any residual catalyst.