It probably got its start in the late 15th century, where it was distilled from sugar production left-overs. Gradually the form and craft improved so that it was no longer a spirit fit only for the poor and the slaves, but one that could be marketed to the general population.
The use of Cacha? throughout Brazil (then just a colony of Portugal) became so widespread, that on June 12th 1744, Portugal signed into act a law which prohibited the sale and production of Cacha?. Not sure when exactly this law was repealed, but currently there are over 4,000 different brands of Cacha? available in Brazil.
In Brazil, the stade Minas Gerais produces the best cacha? of the country.
DRINKING CACHA?
The traditional way to drink cacha? is pouring the liquor into a short and slim glass called "martelinho" and taking it all at once. The drink should not touch the tip of the tongue, but the latest section, in order not to "burn". Also, one can feel best the cacha?'s flavor this way.
It is not unusual to squirt a lime into the drink before taking it, or eating pieces of rapadura between each glass.