The area around Paraty produces some of the finest Cachaca (also called pinga), in Brasil. Cachaca is the national adult beverage of Brazil and is the main ingredient for caparinhas, it is made from sugar cane. A fine cachaca is wonderfully smooth when taken neat. There are many brands and flavors, and this shop seems to have them all, and you can taste some of the ones on special...but be careful, too much tasting can lead to a long unplanned nap. Every August, Paraty hold the "Pinga Party" one of Paraty's most popular events.
What to buy: The local cachaca's from the Paraty region are the shops specialites, but they also carry pinga from the north which is very good. The labels can be anything from works of art, to empty plastic 2 liter soda bottles with Magic Marker labels. I like the flavored ones, I picked up a nice coconut flavored cachaca for R$19.00 a bottle (US$7.00). Enjoy.
What to pay: Anywhere from US$3.00 to US$50.00.