Many perceive this as a type of alcoholic drink. However, chocolate liquor, also known as cocoa liquor, is actually the liquid component obtained by the grinding of cocoa nibs from the cocoa bean. It is converted into cocoa powder and cocoa butter as end products, and is a primary ingredient in chocolate manufacture.

This is different from chocolate liqueur, which is an alcoholic beverage with chocolate flavour. Chocolate liquor is generally halal; chocolate liqueur is not.