Sugar production was mostly switched from the Madeira islands to Brazil by the Portuguese in the 16th century. In Madeira, aguardente de cana is made by distilling sugar cane juice into liquor, and the pot stills from Madeira were brought to Brazil to make what today is also called cachaça. The process dates from 1532 when one of the Portuguese colonists brought the first cuttings of sugar cane to Brazil from Madeira.

Cachaça can only be produced in Brazil. Cachaça, like rum, has two varieties : un-aged, that is “white” or “silver“, and aged amarela, “yellow” or “gold“. White cachaça is usually bottled immediately after distillation, though some producers age it for up to 12 months in wooden barrels to achieve a smoother blend. Dark cachaça, usually seen as the “premium” variety, is aged in wood barrels and is meant to be drunk neat. It is usually aged for up to 3 years, though some ultra-premium cachaças have been aged for up to 15 years. Its flavour is influenced by the type of wood the barrel is made from.

In Malta and Europe the most well-known and most popular drink made with Cachaça is Caipirinha, an exciting mix of Cachaça, crushed ice and lime, plus white cane sugar.