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That looks like marbled chocolate to me, applied on the sides of the cake using transfer sheets.
Beryl's sells these and here are 2 links that look similar to the marbling on your cake picture:
http://beryls.safeshopper.com/306/7403.htm?812
http://beryls.safeshopper.com/306/7406.htm?812
They come in 15"x12" sheets so you can just cut them to height of your cake sides.
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