Cut brandy is a liquor made of brandy, neutral grain spirit and water. Sometimes, sugar is used to soften taste. It is often colored with caramel color.
Most cut brandies are graded by the relative amount of brandy it contains. Grades are represented by stars.
The Finnish Jaloviina ("noble Brännvin", colloquially Jallu) is a cut brandy with 38% (one star) or 40% (three stars) ABV. It has a strong taste and 4–7 grams of sugar per liter, depending on the grade. Special or vintage batches are also bottled, these may have slightly higher alcohol and sugar content. The brandy used for Jaloviina is of French origin. Jaloviina Tammi is a limited-edition bottling made with cognac to celebrate the 100 years of Finnish independence.
In Germany, particularly in former East Germany, cut brandy (German: Weinbrandverschnitt) is widespread. German cut brandy is never graded; a large majority of the cut brandy on the German market would fall into the zero stars category. A typical characteristic of German cut brandy is its unusual low alcohol content, generally between 28% and 32% alcohol by volume. Therefore it has a very soft taste which is possibly the reason for its popularity in Germany. German cut brandy also has a very distinct taste, quite different from genuine brandy and other cut brandies like Finnish Jaloviina.
Most brands of cut brandy in Germany are of East German origin and the eastern states of Germany are also the most important market for cut brandy. This has historical reasons. In the East German planned economy there was very often a shortage of brandy and cut brandy was produced as a substitute. Eastern German cut brandy is traditionally called Goldbrand (cut brandy with at least 10% brandy) or Goldkrone (cut brandy with at least 20% brandy), both colloquially called Goldi. The very few cut brandies of West German origin do not use these names.