Compound chocolate is a product made from a combination of cocoa, vegetable fat, and sweeteners. It is used as a lower-cost alternative to true chocolate, as it uses less-expensive hard vegetable fats such as coconut oil or palm kernel oil in place of the more expensive cocoa butter. It may also be known as 'compound coating' or 'chocolatey coating' when used as a coating for candy.
Often used in lower-grade candy bars, compound chocolate is designed to simulate enrobed chocolate on a product.
Cocoa butter must be tempered to maintain gloss and coating. A baker tempers chocolate by cooling the chocolate mass below its setting point, then rewarming the chocolate to between 31 and 32 °C (88 and 90 °F) for milk chocolate, or between 32 and 33 °C (90 and 91 °F) for semi-sweet chocolate. Compound coatings, however, do not need to be tempered. Instead, they are simply warmed to between 3 and 5 °C (5.4 and 9.0 °F) above the coating's melting point.
^"Supplementary Information on Specific Products: 9.3 Chocolate and Cocoa Products". Canadian Food Inspection Agency. 29 November 2011. Retrieved 3 June 2012. Compound coatings, which are products having the appearance but not the composition of chocolate, are often used as an outside layer or coating for biscuits, candy and frozen confections or as chips within baked goods. There should be no indication in the advertisements for these products that the coatings are "chocolate". However, 'chocolate flavoured', 'chocolate-like', and 'chocolatey' have been accepted as appropriate descriptions of such coatings and chips.