Plant sterols and plant sterol esters have been shown to be cholesterol-reducing agents in human serum. In the present invention, plant sterols and plant stanols are incorporated into compositions which are dispersible in water by complexing the hydrophobic lipids with water-soluble carbohydrates. The resulting plant sterol-carbohydrate complexes are in an aqueous or powder form which can be readily incorporated with food products in an amount effective to reduce serum cholesterol levels in a human consuming such food product, without adversely modifying the organoleptic properties of the food product.