Nomenclature
The term spirit refers to a distilled beverage that contains no added sugar and has at least 20% alcohol by volume (ABV). Popular spirits include brandy, fruit brandy (also known as eau-de-vie or Schnapps), gin, rum, tequila, vodka, and whisky.
Distilled beverages bottled with added sugar and added flavorings, such as Grand Marnier, Frangelico, and American schnapps, are liqueurs. In common usage, the distinction between spirits and liqueurs is widely unknown or ignored; consequently, all alcoholic beverages other than beer and wine are generally referred to as spirits.
Beer and wine, which are not distilled beverages, are limited to a maximum alcohol content of about 20% ABV, as most yeasts cannot reproduce when the concentration of alcohol is above this level; consequently, fermentation ceases at that point.
Read more about this topic: Distilled Beverages