Cocoa liquor was invented by a Dutch chemist named Conrad J. vanHouten to remove the fat from chocolate. Cocoa liquor is a mixture of cocoa powder and cocoa butter. vanHouten also created the process called “Dutching” which is done by adding certain agents to increase the pH of the cocoa powder. This process is used to improve solubility and flavor of the cocoa. Cocoa liquor does not include any alcohol, despite the name.