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Aug 23 2007 12:00am EDT

Swiss Toast Falls Flat

Does Champagne by any other name taste as sweet?

The European Court of Justice ruled on Wednesday that wine produced in the tiny Swiss village of Champagne would have to be relabeled, as bottles carrying the appellation "Champagne" infringe on the rights of France's famous wine region.

To most Americans, all sparkling wines are commonly referred to as Champagne; but by law, only the bubbly produced in the Champagne region of France can be labeled as such.

France has had a lock on that geographical appellation since 1974, when the World Trade Organization allowed wine producing regions in Europe to call 'dibs' on region names to which they wanted exclusive rights.

So when the Champagne vs. Champagne bottle labeling issue came to light during a round of European Union negotiations in 1999, Switzerland agreed to help keep Swiss wine labels free of the French regional appellation.

Residents of Champagne balked, pointing out that the village has produced wine by that name since the 10th century, while France did not start producing its champagne until the late 1600s.

But a village numbering under 700 inhabitants is no match for France's powerful wine lobby. The Swiss wine isn't even of the sparking variety, but the intensity with which the French are protecting the Champagne name shows just how fiercely they are now fighting pressure from New World competitors.

France is just now beginning to reverse a decade of wine industry losses as vino from the United States, Australia, and South Africa continually gained prominence.

Just two days ago the Federation of Wine and Spirit Exporters France announced a 7.5 percent growth in exports for the first half of 2007, a gain that was led by a 13.1 percent right in Champagne exports.

French vintners are also vigorously fighting major wine reforms being pushed through by European Union Farm Commissioner Mariann Fischer Boel that would affect everything from planting volumes to wine labeling conventions.

So what's the next target for France's pugnacious winemakers? Maybe producers in Champaign, Illinois should watch their step.

by Liz Gunnison


Laura Rich is a co-founder of Recessionwire, which provides news, advice, perspective and humor about the recession and the recovery.

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