The most fundamental difference is geographical.
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Champagne refers exclusively to sparkling wine produced in the Champagne region of northeastern France. The name is legally protected, much like a fine Parmigiano-Reggiano or Cognac.
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Sparkling wine, on the other hand, is a global category. It refers to any wine with bubbles produced outside of Champagne, whether it’s an Italian Prosecco, a Spanish Cava, a South African Cap Classique, or even a French Crémant.
Just as terroir shapes the soul of a wine, origin defines Champagne’s character.