Cachaça is a distinctly Brazilian product, distilled from fermented sugarcane juice. While rum can also be made from sugarcane juice, most is distilled from molasses. The type of rum made from sugarcane juice is known as rhum agricole, and is therefore a closer stylistic match to cachaça.

Sugar production was mostly switched from the Madeira islands to Brazil by the Portuguese in the 16th century.

Cachaça can only be produced in Brazil, where, according to 2007 figures, 1,500,000,000 litres (396,000,000 US gal; 330,000,000 imp gal) are consumed annually, compared with 15,000,000 litres (3,960,000 US gal; 3,300,000 imp gal) outside the country. It is typically between 38% and 48% alcohol by volume. When homemade, it can be as strong as the distiller wants. Up to six grams per litre of sugar may be added.

There are many cocktails made with cachaça. Caipirinha is by far the most popular and internationally well-known

More Info: en.wikipedia.org