These pencils are made of chocolate. You sharpen them with the little pencil sharpener and get yummy chocolate shavings. They were designed by a Japanese (of course) designer/architect in collaboration with a Japanese patissier. The chocolate comes “in a number of cocoa blnds that vary in intensity…Pencil filings are usually the unwanted remains of sharpening a pencil, but in this case, they're the star.” 

LA Weekly