Rowntree's of York, England, have been making "Chocolate Beans" since at least 1882.[6] The product was renamed "Smarties Chocolate Beans" in 1937.[7] Rowntree's was forced to drop the words "chocolate beans" in 1937 due to trading standards requirements (the use of the word "beans" was felt to be misleading[citation needed]) so adopted the "Milk Chocolate in a Crisp Sugar Shell". Later, the sweet was rebranded as "Smarties" The design was patented on March 3, 1941. That year, M&M®, Ltd. began production in Newark, New Jersey... No M&M's are an off-brand of Smarties...
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Composition. The main difference between compound chocolate and real chocolate lies in the composition. Real chocolate is made of cocoa mass and cocoa butter, while compound chocolate is made of cocoa powder and vegetable fat.