TTB Proposes Designating Cachaça as Type of Rum

The Alcohol and Tobacco Tax and Trade Bureau (TTB) has issued a proposed
rule that would amend the standards of identity for distilled spirits to include
Cachaça as a type within the class designation for rum. Responding to two
petitions from the Brazilian Embassy, TTB has concluded that it is appropriate
to recognize Cachaça, which derives from cane sugar, “as a distinctive product
of Brazil” provided it is manufactured “in compliance with the laws of Brazil
regulating the manufacture of Cachaça for consumption in that country.”

The proposed rule would apparently allow the distilled spirit to be marketed
as “Cachaça” without the term “rum” on the label, “just as a product labeled
with the type designation of ‘Cognac’ is not required to also bear the class
designation ‘brandy.’” In keeping with Brazilian regulations, TTB would also
refuse the Cachaça designation to distilled spirits that use any corn or corn
syrup in the fermentation process.

The bureau has specifically solicited public feedback addressing whether
the proposed amendment would adversely affect U.S. trademark owners as
well as “the extent to which distilled spirits labeled as ‘Cachaça’ are produced
outside Brazil.” It will accept comments until June 29, 2012.