The easy and short answer is that sparkling wine can only be called Champagne if it comes from the region of Champagne, France, which is just outside of Paris. The only labels that are legally allowed to bare the name “Champagne” are bottled within 100 miles of this region (according to European Law)
To clarify, all champagne is sparkling wine, but not all sparkling wine is champagne, true Champagnes can only be made in the Champagne region of France and with seven distinct grapes (and a slew of other regulations), sparkling wines aren’t held to the same restrictions. Sparkling wine may be made with the exact same grapes as Champagne or an entirely different blend. From Rosé to Brut (or extra dry varieties) to super sweet sparkling dessert wines, the flavors and qualities run the gamut.
We really should think of Champagne in terms of a geographical place as opposed to a winemaking style.
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