Full story here (from the Telegraph online)
Scientists from the Voronezh State Technological Academy in Russia have now found a way to turn blood into biscuits, yoghurts and drinks. They say that mass production could begin in six months.
But wait! it's not human blood. It's waste blood from a meat plant that would otherwise discard it (up to seven tons a day in fact)
Examples from the article:
They have made a "chocolate" filling for biscuits using cow blood cells, sugar and chocolate flavouring. To do this, they expose a paste of red blood cells to oxygen to turn it brown. This is then used in place of the cocoa butter or vegetable fats normally used to make chocolate.
Coffee drinks can be made using a similar method.
They have also made a "yoghurt" drink using plasma extracted from cow blood, which is treated with bacteria to give a creamy appearance, then mixed with sugar, preservatives and falvourings.

So effectively, the blood products do not actually taste of blood. Perhaps more interestingly though, they are up to five times cheaper to manufacture than their dairy counterparts, not to mention that they contain almost no fat and are a rich source of iron. Apparently, the blood yoghurt contains up to twice as much protein as dairy yoghurt.