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Cachaça plays a crucial role in Brazilian culture, society, and economy, with deep roots in Portuguese colonization and sugar production. Cachaça production began soon after the arrival of sugarcane in Brazil, with the first documented plantation being established in 1504 by Fernão de Noronha on the island of Fernando de Noronha. The first sugar mill was established in 1516 at the Feitoria de Itamaracá in Pernambuco. In the 1530s, the arrival of Portuguese grantees in the captaincies of Pernambuco and São Vicente spurred the expansion of sugar production and the development of new agricultural and settlement areas. Although it is not known exactly where the first distillation of cachaça occurred, it is believed to have occurred between 1516 and 1532 at a sugar mill on the Brazilian coast, making cachaça the first distilled drink in Latin America.