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Pisco is a clear, grape-based distilled spirit, which is like a grape brandy. Both Peru and Chile claim pisco and the Pisco Sour as their own, and there is a fierce rivalry over it.  Both are made from grapes, but there are differences in how they are distilled and blended.
In Peru, pisco can only be made with fresh grape must – that is, a very young wine – which is then distilled and into the resulting spirit. Traditionally this is done in copper pot stills, as Macchu Pisco does. Additionally, no water or anything else that could affect the flavor or clarity of the pisco may be added/done.
In Chile, the base material for pisco does not have to be fresh grapes – you could for example use an older wine.  
This means producers are allowed to add water and age the pisco in oak barrels in order to dilute and soften the edge of this product.  That’s why one ends up with Chilean piscos as low as 30% alc/vol, versus Peruvian ones, like Macchu Pisco, which come in at about 40%.