8 best poncha bars on Madeira Island

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It’s an impossible task to write a list of all the poncha bars on Madeira. Any bar worth its liquor license will almost certainly be serving this strong and fruity local punch. Over multiple trips to this mountainous Portuguese island off the coast of Africa, I’ve enjoyed a few (too many) Madeiran ponchas – a traditional alcoholic drink. It’s delicious and you don’t really find this drink on the Portuguese mainland or in Lisbon, where I’m based.

Curiously, many of the best or most traditional Madeiran poncha bars are hidden on the steep mountainside along skinny winding roads. It’s easy to knock back this sweet, juicy drink so designate a driver before you venture out on a poncha tasting mission.

With that in mind, here’s my list of the best poncha bars on Madeira Island

First, a warning: poncha is strong. We’re talking 50% pure rum masked by the delicious sweetness of fruit juice and sugar. It’s easy to down, one, two three – but four will have you hit the floor and the hangover the next day is not worth it. Proceed with caution and moderation. Good luck!

What is poncha?

Poncha is a traditional alcoholic drink from Madeira. The vibrant and fruity drink is primarily made with aguardente de cana (sugarcane brandy) or rum agricole (rum made from fresh sugar cane juice), honey, sugar, and freshly squeezed fruit juice – usually citrus or tart fruits. 

The mix is stirred vigorously in a jug with a traditional tool called a caralhinho. That translates to “little dick” and the special wooden stick is designed to mix the ingredients well so the honey fully integrates with the alcohol and zesty juices. Not all poncha is good – and a good place knows how to balance the sweet, sour, and strength of the liquor. 

🍹 Learn more about poncha with this poncha masterclass and poncha tour, run by a local, that takes you into the hills, or join a more rounded top-rated food tour of Funchal 🍹

History of poncha and sugar cane

Madeira has been growing sugar cane since the 15th century, with the Portuguese planting the first crops a few decades after discovering the empty slang in 1419. Soon it became the top source of sugar in the world. The Portuguese used Madeira as a stop or base during their discoveries of the world, so around the 16th century citrus started passing through the port (used to cure scurvy). Somewhere along its timeline the locals started mixing rum and citrus.

The four traditional poncha types

Poncha Pescador – Invented by fishermen in the area around Câmara de Lobos, this classic is just sugar cane brandy, lemon juice and sugar or honey. 

Poncha Regional – The classic version made with aguardente de cana, lemon juice, orange juice and honey or sugar. 

Poncha de Maracujá – Made with passion fruit juice instead of lemon, this version is sweeter and less bitter. This is my go-to!

Poncha de Tangerina – Uses tangerine juice, giving it a vibrant, sweet, and tangy flavor, and making it slightly lighter than the pescador.

Read next: It’s worth a flight to Madeira just to eat these espetadas

How to drink poncha

There’s really no trick to drinking poncha. Traditionally it is served without ice, so it’s how most people drink it – though I noticed our servers would often ask ice or no ice. Most poncha bars don’t seem to serve much food either, but will hand you a cup of peanuts or tremoços (lupin beans) to snack on. That’s called a dentinho and it’s usually free.

My favourite poncha bars on Madeira Island

A Venda do André, Quinta Grande

Poncha a venda do andre Madeira

A Venda do André is a historic poncha bar in the hills above Cabo Girão, open since the 1950s. Once upon a time it was half poncha bar, half grocery store – and the vintage shelving has been kept intact. Inside feels more like a museum, with one room of cream shelves filled with vintage tin boxes and antique alcohol ads from Madeira.

I remember watching them make one of the four classic ponchas from scratch – using the caralhinho to muddle lemon peel and sugar to a paste before measuring and mixing the rum, then straining into a glass. The final concoction was strained and handed to us along with a tub of marinated tremoços (lupin beans) to snack on.

Google Maps: Estr. João Gonçalves Zarco, Quinta Grande
Open 7 days

Read next: Itinerary: Our magical 5-day Madeira Island road trip

Taberna da Poncha, Serra de Agua

A good friend whose family is originally from Madeira suggested this place, telling us he and his dad skipped the photoshoot at a wedding to drink poncha here. Taberna da Poncha is a true island classic with more than 70 years of history, and the walls show it. Take care not to slip on the discarded peanut shells as you enter the main bar – you’ll be distracted by the walls, covered in thousands of business cards, sports scarves, and vintage knick-knacks. 

Order your poncha (one of the four traditional flavours) or a nikita, a frothy pineapple ice-cream and beer drink – then sit outside and make your own mess with the cups of peanuts provided. From the sunken terrace we had views of the mountains, and if you want to drink more you can get a takeaway bottle.

Google Maps: Estrada regional 104 n⁰ 375, 9350-309
Open 7 days
: 9.30am – 1am

A Mercadora, Funchal

I love a hidden gem, and the poncha bar at the back of this early 20th-century general store is a find. I stepped into the little grocer with my partner’s stepmum in search of spices, but shopping requires sustenance and we saw a group of locals gathered in the tiny, tiny back room. It’s a hidden bar. 

Step past the bags of cornmeal, seeds, and paprika to this small bar where either the husband or wife of this family-run business serves one of the best ponchas in Madeira’s capital. It’s a no fuss spot, and there was only one flavour on offer – pescador, I believe. It was good fun sneaking in a drink as we added our peanut shells to the floor too.

Google Maps: R. Hospital Velho 13, 9060-129 Funchal
Closed Sundays

Engenhos do Norte, Porto da Cruz

Where better to drink poncha than at the rum source? Poncha is, after all, around 50% rum. If you visit Engenhos do Norte between March and May you’ll catch the sugar cane harvest where they turn fresh cane into juice, and that juice into alcohol, using the 19th century steam-powered machinery. Most rum is made from molasses with only 3-4% of the world’s rum made by fermenting sugar cane juice, gaining the name rum agricole

Engenhos do Norte has a bar where you can try aged rum (the three and six years are both nice), order a poncha or three, or try one of their cocktail inventions. The bar is open year-round and the views of the ocean don’t hurt.

Google Maps: Rua do Cais 6, 9225-050
Open 7 days

Read next: Where to eat and drink in Madeira

Bar Number Two, Câmara de Lobos & Funchal

Camara dos Lobos Madeira Island

In the heart of Câmara de Lobos, a charming fishing village just west of Funchal, we stumbled on Bar Number Two. I’d seen its Lisbon outpost, so assumed this was the original. Their third bar, in the heart of Funchal, looks more modern. 

We’d tried poncha at the more flashy bar across the road and were left unimpressed. It made it even more of a joy to sit on this terrace with views of the bay. The poncha is great. Beyond the classic four there’s also poncha de pitanga (Brazilian cherry), poncha de absinto (absinthe), and poncha de hortelã (mint).

Google Maps: Rua da Carreira, Largo do Poço nº 2, 9300-039 Câmara de Lobos
Open 7 days

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Barraca d’Avó, Santo da Serra Sunday Farmers Market

This Sunday farmers market is maybe the best things I’ve experienced on Madeira Island – combing local life and traditional food. Arriving in the late morning, we made a B-line for Barraca d’Avó. I’d heard this street food stall serves a great poncha – and a brilliant dentinho (free little snack) of the best milho frito on the island. With a poncha in hand, we wandered the market admiring local produce, dancing to folk songs, and snacking at the bars.

Google Maps: ER207 376, 9100-255 Santo António da Serra
Open Sundays

Os Castrinhos, Funchal (outskirts)

On the far outskirts of Funchal lies this gem of a poncha bar, overlooking a sea of banana plantations. Os Castrinhos has been open since 1952 and serves a wide range of drinks along with small portions of food. Having tried the classic four ponchas many times, I went for something different – the poncha de tomate inglês (tamarillo) – and it was fantastic. They also serve poncha made with kiwi, pitanga, mint, strawberry and few other off-beat flavours.

Os Castrinhos is more than a poncha bar. We’d come to try the Pé de Cabra, a drink I’ve written about in my guide to what to drink on Madeira island here. It’s an odd mix of stout beer, chocolate milk, Madeira wine, sugar and lemon peel. Os Castrinhos also seems to have a massive collection of craft beer, and it serves dentinhos and sandwiches stuffed with delicious things. If I had space I would have tried the beef tongue sandwich, which I’ve heard is phenomenal.

Google Maps: Caminho do Pinheiro das Voltas 12, 9000-150 Funchal
Open 7 days

Read next: 29 traditional Madeira dishes and food to try

Pharmácia do Bento, Funchal (downtown)

Despite the name, it is not a pharmacy – but Pharmácia do Bento is a little grocery store and bar that has served the people of Funchal for more than 150 years. Pull up a stool at the bar and watch people pop in to buy spices and other household goods as you sip on the one type of poncha they serve – regional, I believe. If you need more variety, next door you’ll find a rainbow of colourful ponchas at Rei da Poncha.

Google Maps: R. dos Tanoeiros 4, 9000-057 Funchal
Open weekdays

Map of the best poncha bars on Madeira Island

That’s my list of the best places to drink poncha on Madeira Island. Anywhere I should try next time? leave me a comment and I’ll add it to my list!

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Daniela Sunde-Brown

I'm an Australian travel and food writer who has called Lisbon home since 2018. To help others explore Portugal, I write deep stories about Portuguese traditions, regional dishes, local artisans, and sustainable fashion and ceramics
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Headshot of Daniela Sunde-Brown in a tiled dress with a straw hat on

Olá, I'm Daniela

I’m an Australian travel and food writer who has called Lisbon home since 2018. To help others explore Portugal, I write deep stories about Portuguese traditions, regional dishes, local artisans, and sustainable fashion and ceramics 🙂

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