Swiss communal fondue arose many centuries ago as a result of food preservation methods. The Swiss food staples bread and raclette-like cheese made in summer and fall were meant to last throughout the winter months. The bread aged, dried out and became so tough it was sometimes chopped with an axe. The stored cheese also became very hard, but when mixed with wine and heated it softened into a thick sauce. During Switzerland's long, cold winters some families and extended groups would gather about a large pot of cheese set over the fire and dip wood-hard bits of bread which quickly became edible.

Modern fondue originated during the 18th century in the canton of Neuchâtel. As Switzerland industrialized, wine and cheese producers encouraged the dish's popularity. By the 20th century many Swiss cantons and even towns had their own local varieties and recipes based on locally available cheeses, wines and other ingredients.

During the 1950s a slowing cheese industry in Switzerland widely promoted fondue since one person could easily eat half a pound of melted cheese in one sitting. In 1955, the first pre-mixed "instant" fondue was brought to market.

Fondue became popular in the United States during the mid-1960s after American tourists discovered it in Switzerland.

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