When arrack  —  originally an Indian strong liquor made from rice, sugarcane, palm sap, molasses, date juice, anise seed etc  —  was first introduced in Sweden in the 18th century, it became the main ingredient in a new popular drink mixture, called punsch.

Arrack was imported from Java, Indonesia, where it was distilled by Chinese immigrants, who have kept the exact production process and ingredients a secret, all the way from the 18th century to our days.

Punsch in the old days was made by mixing arrack with sugar, lemon and hot water  —  similarly to the punches drunk in France, England and Germany. Lemon was later omitted and replaced with white wine.

The modern punsch, sold ready-made in Sweden from 1845 on, is an arrack-based sweet, yellowish-clear liqueur, which has the alcohol content of around 26 % (Gay-Lussac scale). Colour may vary from light golden yellow to dark. Depending on product, the sweet taste may have a hint of almond or almond paste, banana, chocolate, whisky or even tobacco flavour in it.

At first punsch was usually drunk warm, but from the mid-19th century on it became a custom to drink it chilled. Yet even today in Sweden  —  and in Finland  —  it is sometimes served warmed to accompany green pea soup, especially at Shrovetide. Punsch is also excellent served as a dessert drink with coffee or tea or with some good blue cheese.

Outside Scandinavia, Swedish punsch may also be known as arrack punch or caloric punch.