A mineral or vitamin fortification ingredient which does not deteriously affect palatability and appearance of foods is obtained by encapsulation of the mineral or vitamin in a grindable, glassy matrix composition. At least one edible oil is included in the encapsulating composition to prevent substantial adverse interaction between the mineral or vitamin encapsulant and the glass-forming matrix material, and to achieve controlled release of the encapsulant from the glassy matrix. The oil also reduces or eliminates the use of added water as a plasticizer thereby avoiding the need for substantial evaporation or drying to achieve a non-rubbery, grindable encapsulated ingredient. The oil assists in plasticizing the matrix material for extrudability and the prevention of undesirable browning or discoloration of the encapsulating matrix composition. The oil and the glassy matrix material provide a smooth mouthfeel and eliminate the rough, scratchy, griffy, dry, hard, or chalky mouthfeel associated with particulate or crystalline mineral sources. The fortification ingredient may be produced by melting the one or more glass-forming matrix components such as mono- or di-saccharides in the presence of optionally added water. The resulting melt may then be combined with an oil-slurried mineral and/or vitamin encapsulant and cooled to obtain a formable, pliable molten mass. The mass may be extruded and cut into pieces or pellets and cooled to obtain a grindable, glassy matrix which encapsulates the oil encapsulated mineral or vitamin. The encapsulated minerals and/or vitamins may be ground into a particulate composition such as a fine powder for direct incorporation into or for topical application onto foods such as ready-to-eat cereals, yogurt and fruit snacks.