The Natural Resources Route

Who has not heard of the bubbly beverage champagne? Why does champagne command higher prices and higher brand equity than other sparkling wines? Because France has branded this natural resource. Winemakers produce champagne from grapes grown in the Champagne region in the north-east of France; the process requires secondary fermentation of the wine in the bottle to create carbonation. The Champagne winemaking community, under the auspices of the Comité Interprofessionnel du Vin de Champagne (the trade organization established by statute to administer the common interests of the Champagne industry), has developed a comprehensive set of rules and regulations for all wine produced in Champagne, to protect the region’s economic interests. It has codified the most suitable growing places, the most suitable grape types (most champagne being a blend of up to three grape varieties, although other varieties are allowed), and most aspects of viticulture, including pruning, vineyard yield, the degree of pressing, and the time that the wine must remain on its lees1 before bottling. Only after meeting all these requirements may a winemaker label the product “champagne.”