The present invention relates to a process by which blends of whey and whey permeates can be converted to a modified whey powder (MWP) having low mineral content, low hygroscopicity, and advantageous organoleptic properties characterized by a combination of ion-exchange demineralization and crystallization. The modified whey powder thus obtained is suitable for dry applications in the production of food products. Furthermore, the present invention relates to a modified whey powder (MWP) obtainable by said process and to products comprising said modified whey powder (MWP), such as confectionery,biscuits and powdered soft drinks.