Reflections, Part Two
I can divide the places I visited into three categories. This categorization is based purely on what representatives of different distilleries said to mee. Most of them were quite candid in assessing their regions, what they thought of competitors, and where they believe the cachaça community should head.
In the first category is the region where people work together, communicate with one another, and have taught and learned from each other. Competition is a given in whatever market. But firms that understand that forging a regional identity is crucial for lifting all firms, particularly when there isn’t great differentiation in the products they create, facilitates a welcoming atmosphere. They breed something more than merely a tourist destination. They are helping develop a culture that both demands quality and is supportive. My experience in this region (which I’m not going to name, though if you read through my previous posts, you can probably figure it out), was excellent.
In the second category is the region where there are a few quality producers who feel pestered by lower quality distilleries. These locations that facilitate coat-tail riders allow distilleries, which may not be interested in producing quality, only producing quantity, to create the impression that they are part of a cultural and touristic phenomenon where all players are equal. However, because some of those firms don’t make the effort or haven’t learned to create quality, only those firms at the top can truly succeed in terms of product sales. While tourism will keep those other firms afloat, they are letting their fellow producers down by not stepping up their game.
The last region includes firms that appear completely out of touch with one another. Despite sharing a regional affinity, they don’t seem to communicate about much of anything. Resentment doesn’t lie with the quality of the product, but with the national success of one player. This colors the judgment of some firms, which may be producing perfectly fine cachaça but are resentful of their lack of broader success outside of the region.
The politics of any industry are complicated. But these dynamics are incredible. An industry fighting for respect among a skeptical, native population. Differing taxation rules among states. Above 4,000 producers across the country, but concentrated in a few major hubs. Ownership personality differences. Differences in production quality. These factors influence why these regions fit into these three distinctive categories. The blanket term artisanal cachaça has lent itself to being misused by producers who have little interest in being good distilleries and representatives of cachaça. One can produce artisanal cachaça very poorly. And when poor cachaça makes it to market, or somehow ends up as the representative of a region before uneducated cachaça consumers, the damage can be great.
I’m not suggesting that these producers get out of the market. I’m suggesting they step-up their production game to match their regional leaders. In places where there are minor production differences, success of one firm shouldn’t be a threat. Instead, it should motivate competitors to figure out how to improve their production so that consumers view the region with respect.
A lack of alignment among producers continues to hold back the market as a whole. My prediction is that the regions with the most cooperation will see the most success, while those that lack it will continue to struggle. I know, I’m practically Nostradamus. Thank you for coming to my Ted Talk.
