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Why is champagne called champagne?

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It is called champagne because it is produced in the Champagne region of France. Only the wine produced there, with few exceptions, can be called Champagne.
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What is orange juice and champagne called?

  That's commonly called a Mimosa, or a Buck's Fizz in the UK. There are many recipes available online (including non-alcoholic) depending on your tastes.

What is very dry champagne called?

The French word for "dry" in the wine or champagne sense is "brut". I suspect that's the word you're looking for.