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Brazil attempts to curb cachaça imitators

Brazils’ sugar cane juice-based spirit, Cachaça is hoping to ride on the back of the boom in rum in Europe. But producers in Latin America are increasingly concerned at the number of low-priced and often poor-quality cachaças being sold that aren’t from Brazil.

Joao Luiz C. de Faria, owner and producer of Magnífica cachaça, believes as many as 100 cachaça labels in Europe are not from Brazil. In March 2006 Brazilian producers united to form a cachaça institute to try and control the quality of the spirit produced in Brazil and protect it from imitations. Presently, this newly formed institute is lobbying the European Union, hoping it will agree to stop importing non-Brazilian cachaça.

In terms of production, Joao Luiz points out that cachaça is attractive for spirits companies because, "It is the lowest cost distillation product you can make – you don’t need anything but sugar cane. The water is in the sugar cane and the energy you need can be generated using biogas from the cane – the biggest cachaça producer in Brazil actually generates and sells electricity."

As for the market, Joao Luiz believes "15% of sales go into making Caipirinhas" – Brazil’s traditional cocktail. Helping to expand the market in the UK and northern Europe is cachaça brand Sagatiba, which Joao Luiz admits "is doing a great marketing job for Brazil." Reinforcing the sense there is renewed interest in this spirit is, according to Joao Luiz, Diageo’s decision to take more interest in its cachaça brand Nêga Fulo. "Diageo bought it seven years ago and didn’t do anything with it, but now they are starting to."

Within Europe, Germany is the biggest importer of cachaça, consuming some 4 million litres per year according to Joao Luiz, while Portugal, Italy and France drink more of the spirit than the UK, which imports between 200,000 and 300,000 litres per year, although this figure is growing. Outside Europe, Joao Luiz sees great potential within the US, and in particular he notes an increasing worldwide interest in Brazilian culture – be it in the country’s football, food, drink or dance.

© db 15th November 2006

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