Cocoa. 1  Cocoa is the term used to refer to the heated form of cacao that you probably grew up buying at the store in the form of cocoa powder. 2  Though cocoa may seem inferior to raw cacao, itâs actually very good for you (and less expensive) if you choose a variety without added sugars and milk fats or oils. 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.