Cachaça is mostly produced in Brazil, where 1.5 billion liters (396.4 million gallons) are consumed annually (roughly eight litres per head), compared with 15 million liters (3.964 million gallons) outside the country. Cachaça is, "...the product of the distillation of fermented sugarcane juice, with its alcohol strength between 38% and 48% by volume. Up to six grams per liter of sugar may be added."
Cachaça differs from rum in that it is made from sugarcane juice while rum is made from either molasses or sugarcane juice then aged in oak barrels.
1.3 billion liters of Cachaça is produced each year. Only 1% of this production is exported (mainly to Germany). Outside Brazil, cachaça is used almost exclusively as an ingredient in tropical drinks, with the caipirinha being the most famous cocktail.