This invention relates to the manufacture of good quality reduced fat chocolate. A process for producing granulated reduced fat chocolate power is provided. Agglomerating reduced fat chocolate powder by addition of an aqueous composition to produce agglomerated powder and drying to remove the aqueous composition forming granules of up to 5 mm in diameter. The granules produced as a result of this invention provide many advantages, these include chocolate in granule form which is easier to manipulate industrially than other forms of chocolate such as powder, the granules have good flavour as conching or other flavour development step was carried out on the composition and fat is removed without damaging the flavour.