1 From there, cacao beans can be processed a few different ways. 2  Cacao butter is the fattiest part of the fruit and makes up the outer lining of the inside of a single cacao bean. 3  It is white in color and has a rich, buttery texture that resembles white chocolate in taste and appearance. Cacao butter is removed from the bean during production and the remaining part of the fruit is used to produce raw cacao powder. 2  Cacao nibs are simply cacao beans that have been chopped up into edible pieces, much like chocolate chips without the added sugars and fats.