Terroir (pronounced 'tair-WAHR') is a French concept describing the complete natural environment in which a wine is produced — soil, climate, topography and the interaction between them. It is the reason the same grape variety tastes different in different places.
Understanding terroir helps explain why a Burgundy Pinot Noir tastes different from an Oregon Pinot Noir even with the same grape. Terms like 'mineral', 'flinty', 'chalky' or 'earthy' on wine labels often reference the influence of soil. Regions with strong terroir identity (Chablis, Burgundy, Barossa Valley) command higher prices because the location itself is part of the product.