It actually is a buttplug that santa is holding. The piece is by artist Paul McCarthy and these chocolate sculptures are actually based on a much bigger bronze sculpture he made previously. He's setting up a chocolate factory at the Maccarone Gallery in Manhattan where he's selling them for $100 each. The gallery had to undergo a complete overhaul of its plumbing, electrical wiring and ventilation to meet New York City's factory code. Master chocolatier Peter P. Grewelling is overseeing the production.