The economic crisis has not dented the optimism of France's illustrious champagne houses, which are shrugging off a sudden drop in sales as a minor blip unlikely to halt their triumphant march into emerging markets.

Although their seven-year boom has ended, champagne producers are refusing to cut prices, amid claims that they will be able to ride out the global economic downturn.

However, critics say that a sector often denounced as arrogant is making the same mistake as in 1990, when it witnessed a huge slump after maintaining inflated prices in the face of a recession. Moët & Chandon, Dom Pérignon, Mumm and Perrier-Jouët are among the champagne brands thought to have been hit by a 4.9 per cent drop in sales in the first ten months of the year. In October alone sales volumes fell 16.5 per cent to 36.2 million bottles.

The decline has been particularly sharp in the United States, where consumption of bubbly has fallen every month since March 2007 and is down 17 per cent this year. The French market, which swallows 55 per cent of all champagne, is also down 5 per cent compared with the same period last year as drinkers switch to cheap sparkling wines. The UK — the second-biggest export market for champagne — is following a similar trend, with a 6.7 per cent fall in the first ten months of this year.

A spokesman for the Comité Interprofessionnel du Vin de Champagne, the champagne producers' professional body, said that vineyards were waiting anxiously for the final-quarter figures, which account for about 40 per cent of annual revenue. “Without being truly worried, the profession is tense,” he said.

In an attempt to boost end of year sales, Moët & Chandon announced this week that customers could order bottles personalised with messages in Swarovski crystal. The service was previously available only to VIPs.

However, champagne houses say that they have a comfortable cushion after a 21 per cent increase in sales between 2000 and 2007, culminating in a record 338.7 million bottles last year. They say overall revenues are likely to remain stable this year after steep price rises last winter, which will offset the fall in sales. Few countenance anything other than handsome profits in 2009. Indeed, vineyard owners say that the drop in sales volumes may actually be a blessing in disguise because it will reduce the strain caused by rising demand in China, Russia and other emerging markets.

With only 33,000 hectares of vineyards licensed to produce the world's most venerated drink, they had feared a champagne crunch over the next decade, with not enough bubbly to go round. A further 10,000 hectares of vineyards have been authorised to make champagne, but not before 2017.

Patrick Le Brun, the chairman of the Champagne Vineyards' Union, said: “The rise in volumes over the past three years has been excessive. The slowdown will enable us to improve quality.”

There are about 100 champagne houses, accounting for about 70 per cent of total sales and 90 per cent of exports. LVMH, the luxury group, boasts the Moët & Chandon, Dom Pérignon, Veuve Clicquot, Krug, Mercier and Ruinart brands.

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