Coconut Powder is for cakes, cookies, granola and fruit salads. It is unsweetened and has no added sulfur. Shredded Coconut thats been shredded and usually dried. It is available both sweetened and unsweetened, and the shred ranges from fine threads to coarse flakes. Sweetened coconut has been combined with confectioners sugar and is best used in sweet preparations. Use unsweetened shredded coconut in savory dishes.