In 1994, Robert Steinberg, a family physician who was exploring new interests, was introduced to the idea of chocolate manufacturing by a friend. After spending a few weeks at Bernachon, a small family-owned chocolate maker in Lyons, France, he returned to the Bay Area more interested than ever in making chocolate.

He discussed the project with John Scharffenberger, his friend and former patient. In early 1996, the two agreed to work together. They purchased their first machine at a chocolate factory in Germany and formed a legal partnership later that year.

John Scharffenberger moved to the Bay Area to attend the University of California at Berkeley. After graduating with a combined major in botany, cultural anthropology, food history and geography in 1973, he moved to Mendocino County, where he began to grow strawberries and nursery products organically. Then he turned his interests to producing domestic sparkling wine using classic European production methods. He sold Scharffenberger Cellars in 1995.

When John's friend and former physician Robert Steinberg approached him about joining his chocolate-making venture in 1996, Scharffenberger seized the opportunity.

Using a coffee grinder, mortar and pestle, an electric mixer, and a hair dryer to produce their first chocolate, in Robert's home kitchen in 1996, the two tested nearly 30 varieties of cacao beans for flavor.

The first official batch of Scharffen Berger chocolate was made in their South San Francisco factory using vintage European equipment. It was well-received by Bay Area foodies but it took a series of further experiments before the company could consistently make wonderful chocolate.

By 2000 the company had outgrown their initial factory space. The company moved into its 27,000 square foot factory in Berkeley, CA in May, 2001. The classic brick and mortar warehouse facility provides manufacturing space as well as the cool environment needed for chocolate making.