Similar to wine and beer, liquor and cordials begin by fermenting liquefied sugars with yeast to produce alcohol. To create liquors or cordials, an extra step called distillation begins after fermentation.

During distillation, the fermented alcohol is heated and the vapor that is emitted is collected. This collected vapor is a grain neutral spirit and is clear and almost flavorless. Distillation removes water and impurities and increases the alcohol content up as high as 95% or 190 proof.

Liquor can be broken down into the following categories: Bourbon, Scotch, Irish Whiskey, Canadian Whiskey, Vodka, Gin, Rum, Brandy, Cognac and Tequila. With the exception of Vodka and Gin, most other categories of liquor get their color and flavors from the additional step of barrel aging.

Cordials or liqueurs begin as a distilled spirit and then are flavored and/or sweetened with additional ingredients. These additional ingredients may include spices, fruits, sweeteners or cream. Schnapps is another common name for a generally sweeter style of cordial.