A method for producing a dispersible xanthan gum product comprising the steps of: (a) adding base to xanthan gum particles to increase the pH of the particles to between about 7 and about 9.5; (b) reacting the base with the xanthan gum particles for a time period sufficient to allow the base to fully penetrate the xanthan gum particles; (c) adding glyoxal to said basic xanthan gum particles; (d) maintaining said reactants for a period of time sufficient to allow the glyoxal to homogeneously permeate the xanthan gum particles; and (e) adding acid to said reactants to enable the formation of hemiacetal linkages between the glyoxal and the xanthan gum particles; and the product produced thereby is disclosed.