Champagne is a dominant gene that dilutes hair pigment from black to brown and red to gold.
A dominant gene means that only one copy of the Champagne gene is enough for the gene to make effect.
The Champagne gene makes the following alterations:
On chestnut background it produces a gold body colour and often a fairer coloured main and tail (this can be mistaken for Palomino).
On Bay background produces a darker tan body with brown points.
The skin of horses carrying the Champagne dilute gene is pinkish / Lavender toned, it becomes speckled as the horse ages particularly around the eyes, muzzle, under the tail, udder and sheath.
Blue-green at birth which darkens to amber as the horse ages.
The Champagne gene is inherited independently of the other coat colour genes and therefore this dilution may occur in combination with any other colour modification gene.