The present invention is an encapsulated yeast composite comprising a core comprising yeast and a coating containing an emulsifiable lipid. The yeast includes Saccharomyces cerevisiae. The invention also relates to other encapsulated bioactive substance composites. The nature of the coating provides controlled release of the bioactive substance from the encapsulate. The encapsulated composites are useful in the production of food compositions, food products, and animal feed products.