Terroir (French, roughly 'taste of place') refers to all the environmental factors that affect how a grape grows and what it tastes like — soil, climate, aspect, altitude and microclimate.
The same grape variety can taste radically different depending on where it is grown. Pinot Noir from Burgundy (cool climate, limestone soil) tastes different to Pinot Noir from California (warm climate, different soils) — both are recognisably Pinot, but the expression is distinct.
Old-world wine (France, Italy, Spain) labels by place rather than grape because historically, the place was considered more defining than the grape. Chablis is Chardonnay; Bordeaux is Cabernet Sauvignon and Merlot; Champagne is Pinot Noir and Chardonnay. Understanding terroir explains why old-world labels name regions rather than grapes.
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