Total Plan — caiacana

Caiacana (Kye-ya-Caana) is a new brand of premium authentic cachaça. A savor that evokes the very essence of what has shaped it for nearly five centuries: The Spirit of Brazil.

OBJECTIVE

Our objective is to grow value to the Caiacana brand and attract the interest of multinational spirit companies.

MISSION

Through our marketing approach, we will connect to the nature of our target markets a unique lifestyle intrinsic to the Spirit of Brazil. We believe in our ability to do this through Caiacana.

CACHAÇA

Cachaça (Ka-SHA-sa) is the national spirit of Brazil, enjoyed by all segments of Brazilian society, and praised by the most demanding connoisseurs of distilled beverages. Cachaça is defined by Brazilian legislation as the alcoholic beverage obtained by distillation of fermented sugarcane juice, with Brazilian law requiring it to be distilled at alcoholic strength between 38 and 54 percent by volume, and bottled between 38 and 48 percent alcohol by volume. Most export cachaça has an alcohol content similar to vodka, tequila, rum, or gin: 40 percent alcohol by volume (80 proof). According to a Brazilian presidential decree, for a product to carry the “cachaça” name, it must be made in Brazil.

Historians date the initial creation of cachaça between 1532 and 1550 in Brazil, pre-dating the creation of its distant cousin rum by more than one hundred years {1651, Barbados}; thus making cachaça the oldest distilled spirit of the Americas.

Cachaça rates among the five most consumed spirits on the planet, and less than one percent is exported. However, industry experts postulate that cachaça is the up-and-coming international spirit category. In the United States, awareness of cachaça is growing dramatically – from essentially zero in 2005 to levels over 25 percent for cachaça and over 40 percent for the caipirinha, pre-World Cup (Global Market Review of Cachaça – Forecasts to 2014). According to the Brazilian Cachaça Institute (IBRAC), the country exported 8.06 million liters of cachaça in 2012 ($14.99 million) and 9.27 million liters in 2013 (US$16.60 million). In 2014, Brazil exported 10.18 million liters of cachaça (US$18.33 million) to 66 countries, with over 60 exporting companies, an increase of over 10% in volume and revenue compared to 2013.

Main destination countries in value: Germany, USA, France, Portugal, Paraguay and Ita

Main destination countries in volume: Germany, Paraguay, United States, France, Portugal and Italy.

TWO CACHAÇAS

“I always say cachaça is two categories with the same name – there’s industrial cachaça which is in decline, but alambique cachaça, made in pot stills, is growing in double-digit numbers. So when you look at the empirical measures, it masks over what is happening in the alambique category.” - Steve Luttmann, Leblon Cachaça

There are cachaças and there are “cachaças.” The most common brands in Brazil are produced in industrial column stills and are filtered many times. These spirits are not aged or are only “rested” for a short time in steel vats. These clear liquors, less expensive and lighter in flavor, represent 90-95 percent of all production and are controlled by a few price-driven corporations. Notably, 90-99 percent of cachaça has sugar added after distillation to mask low quality and enhance drinkability. The majority of these non-aged/low-quality cachaças are consumed in Brazil.

Non-industrial cachaça is produced in traditional alembic (alambique) copper stills and is generally labeled either “aged” or “pure” in Brazil. Aged cachaças, “rested” for a year or more, are meant to be sipped neat or over ice. Most of these cachaças stay in Brazil and have not yet gained international popularity. However, the demand for aged cachaça is predicted to follow that of the pure cachaças.

Pure cachaças are commonly clear and rested for six to twelve months in wooden and/or steel vats. Fewer than five percent of these alembic producers are licensed to sell their own cachaça.

MIXOLOGY

Pure cachaças are highly versatile and can be consumed straight; however, they are primarily promoted for making the caipirinha [kye-peer-EEN-yah]. The caipirinha is Brazil’s national cocktail (muddle half a lime with two teaspoons of granulated sugar, add two ounces of cachaça, add ice). Light and invigorating, the caipirinha does not have quite the “kick” of a tequila-based cocktail. Caipirinha aficionados enjoy the drink because its exotic and tropical flavor is easily associated with the Brazilian culture.

The caipirinha’s popularity extends beyond the borders of its tropical country. This globally popular cocktail has been incorporated within the “heady” world of mixology and is rapidly becoming fashionable in the United States. The International Bartenders’ Association now designates it as one of their “Official Cocktails,” listing it in the Contemporary Classics Index.

“Without question, the Caipirinha is the cocktail of our times”
- Albert Trummer, Renowned Bar Chef

As the cocktail culture expands globally, so does the status of the caipirinha; thus broadening people’s exposure to cachaça. Assuredly, the tendency of bartenders to seek out traditional or more esoteric spirits for these drinks is a driving factor. Leblon Cachaça President and CEO Steve Luttmann adds: “Cocktails are playing a big role. As a white spirit with a lot of versatility, we’ve seen usage extending from the classic caipirinha to ‘Brazilian twists on the classics’ such as Brazilian margaritas to very eclectic bar chef cocktails.”

“The trend is undeniable: Cachaça is the New Tequila, and the Caipirinha is the next Margarita.”
- Jean Luc Lametrie, Sommelier and Food & Beverage buyer

PREMIUMISATION

People are also developing a curiosity about cachaça nuances, much like they do with quality artisanal rums and tequilas. Consequently, the demand for better-crafted cachaças and boutique distiller brands will soar.

Cachaça has recently been going through a redefining period in Brazil, realizing its “premiumisation” potential. The 2014 World Cup in Brazil accelerated this movement. This premiumisation has also encouraged multinational producers, such as Campari and Diageo, to enter the category through the recent acquisitions of Sagatiba and Ypióca, respectively. The image of the cachaça category is being raised as these companies bring to bear their recognized marketing and innovation skills. The greater multinational involvement also promises improved international distribution and will lead to a long-anticipated export breakthrough. (Teatro Naturale International, 2012)

“Using better quality cachaça allows me to play around with more flavors and use less sugar in the cocktails. Over the past few years, cachaça has gotten better, and the taste of sugarcane, as opposed to molasses (like most rums), is lighter and therefore can play better with various fruits.”

- Cristiano Taluzzi, Renowned Bar Chef

BRAZIL IN A BOTTLE

Brazil is becoming the “new buzzword,” and, for most Brazilians, cachaça is closely associated with their everyday lifestyle. Brazil is trending and after presenting an historically successful 2014 World Cup tournament, it is set to host the 2016 Summer Olympic Games. These high-profile events are presenting unprecedented sampling opportunities for the cachaça industry.

Steve Luttmann expounds:

“The (key) is the continued popularity of Brazil as a culture… The growth of ‘Brand Brazil’ overall is driving the cachaça category’s growth internationally… Brazil is coming of age in various aspects, and its national spirit is too, after being disrespected for so long, because people do not have an understanding of how much quality you can get from sugarcane… Cachaça is a symbol of Brazil, and many people who know about beverages and cocktails appreciate its drink – the caipirinha – all over the world… I always look at cachaça as a metaphor of Brazil… a caipirinha is simply a cheap ticket to Rio… What is dramatically accelerating the process is what’s happening as the world casts its attention to Brazil for both the World Cup in 2014, and then the Olympics. These are major drivers of awareness and adoption, as millions visit Brazil for both of these events, discover cachaça, the caipirinha… and bring them back to their home country… This, combined with the continual evolution of Brazil as a major global ‘brand’ of interest in various in

“There has possibly never been a better time to build global awareness around the national spirit.” -- Global Market Review of Cachaça – Forecasts to 2016

A DISTINCTIVE PRODUCT OF BRAZIL

The main difference between cachaça and rum is that rum is usually made from molasses, a by-product from refineries that boil the cane juice to extract as much sugar as possible. Cachaça has a completely different flavor profile than molasses-based rum because it is fermented and distilled from fresh sugarcane juice.

* According to the previous laws in the United States, any spirit deriving from sugarcane must be labeled as “Rum.” On April 11, 2013, the United States Alcohol and Tobacco Tax and Trade Bureau (TTB) designated “Cachaça” as a unique distilled beverage made from sugarcane juice “in compliance with the laws of Brazil regulating the manufacture of cachaça for consumption in that country” and recognizing Cachaça as a “Distinctive Product of Brazil.”

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