USA recognize cachaca as Brazilian drink

After more than a decade of negotiations, the Alcohol and Tobacco Tax and Trade Bureau (TTB)-Government agency specialising in trade in alcohol and tobacco – published yesterday record recognising the cachaça as genuinely Brazilian product. With the decision, which will be from April 11, the drink is sold as "Brazilian Rum", as determined by American authority.
The Brazilian Government, this avoids in the United States that happen to cachaça what occurred with the Russian vodka. The Russia lost the exclusive right to use the name international vodka as a brand in the country, because it had its record in World Trade Organization (WTO).
In exchange for American recognition, the Brazilian Government now will have 30 days to formalize the recognition of "Bourbon Whisky" and "Tennessee Whiskey" as genuinely American products.
"The record defines a process that began a year ago, for which we are fighting for more than a decade," says Cesar Rosa, President of Brazilian Cachaça Institute (Ibrac).
The process of recognition of rum was started officially in April last year. On the occasion, President Dilma Rousseff was in Washington and celebrated the beginning of the process presenting the American President, Barack Obama, with a special edition of cachaça evaluated in R $ 212 thousand, with the bottle set with diamonds.
Against. During the process, there was a period of public consultation in which it was possible to present demonstrations against recognition of cachaça. The only manifestation presented was made by the European Union. "There is a process stalled for more than 15 years in the European Union so that Europe recognize the cachaça. For them, isn't it interesting that recognition because they lose strength in the WTO ", says Rosa.
The u.s. is the second largest importer of Brazilian rum market, second only to Germany. "But they are the world's largest consumers of distillates and also the fastest growing rum market," says Maria WINS Chandra, Director of external relations of cachaça Pitú.
The Ibrac provides that recognition will boost exports to the us. Today, they are sold to the u.s. market 700 thousand liters per year. "I believe that in five years, we can reach 5% of the American market have rum, what means export 5 million boxes, or 60 million litres per year," says rose.
This, however, will not happen without a work of promotion of the beverage, according to producer Otávio Can, cachaça Vale Verde. "In the US, nobody asks rum brand. There, rum is a drink. "
The Director of Darlington and agrees. "The American does not know neither how to consume the cachaça. We need to get a job of education, which, without the recognition, it was not possible, "says Mary of Victories.
The domestic market has a production capacity of 1 billion liters, but produces about 700 million liters per year. More than 4 thousand national brands move about $ 2 billion annually.
Last year, domestic consumption shrank 3.5% by volume, according to preliminary data of Ibrac. There was, according to Cesar Rosa, a migration of consumption for beer and for second-line brands of whiskey and vodka.
On the other hand, the industry's revenue has grown an average of 10%, since many consumers started to buy more fine brands, with higher added value.