The choice of the name Sugar Hill for this group of villas is associated with the fact that in the past sugar cane played a fundamental role in the history and economic development of Calheta and the island of Madeira as a whole. Introduced to the island at the beginning of the 15th century, sugar cane quickly became one of Madeira’s main commercial crops, contributing significantly to the region’s economic growth during the colonial period.

Calheta, with its favorable climatic conditions and fertile soils, was one of Madeira’s main sugar cane growing areas. The production and export of sugar generated wealth and helped to develop the region’s infrastructure.

In this area, there were several sugar mills, where the cane was processed to produce sugar and molasses. These mills were fundamental to the local economy and job creation, helping to shape Calheta’s economic landscape, while also leaving a lasting cultural mark on the west of the island. The traditions associated with harvesting and processing sugar cane are still celebrated today in local events and festivities.

Today, sugar cane is still grown in Madeira, albeit on a smaller scale, especially in Calheta, where it is used to produce rum, molasses and cane brandy, an essential ingredient for the traditional “poncha”, a typical drink on the island.