chocolate is made by fermenting, roasting, shelling, and then crushing cocoa beans to produce nibs which are about 50 percent cocoa butter. the nibs are the ground and pressed into a paste called chocolate liquor.unsweetened chocolate is pure chocolate liquor.depending on the amount of sugar added, the liquor becomes bittersweet , semisweet, or sweet chocolate. milk chocolate is a mixture of chocolate liquor, sugar, and milk solids. it has a creamier flavor than bittersweet or semisweet chocolate. white chocolate, despite its name, is made from cocoa butter, sugar and milk solids. it is not considered chocolate at all because it lacks the key defining element, chocolate liquor.