Remy Cointreau Sees Champagne Unit Offers In Dec, Many Interested

French alcoholic drinks group Remy Cointreau SA (RCO.FR) has received substantial buyer interest for its champagne unit, and the company's chief executive expects to receive offers for the sale in the next few weeks.

"We have much interest for the champagnes and are waiting for the non-binding offers by the end of December," CEO Jean-Marie Laborde told at a press conference Tuesday, adding that Remy Cointreau would be willing to keep those champagne brands in its distribution network, if the buyer so desires.

Laborde said he can't rule out Remy Cointreau getting back into the champagne business in the medium-to-long term because there are some brands in the market with very good value and good profitability.

Remy Cointreau has said it is getting out of the champagne business now because its Charles Heidsieck and Piper-Heidsiek brands aren't generating profits, and the company requires the money for the disposal to invest in its cognac business, which makes Remy Cointreau the world's second-largest producer behind the Hennessy brand of French luxury products group LVMH Moet Hennessy Louis Vuitton SA (MC.FR).

During the 2010 fiscal year, that ended on March 31, the champagne unit generated EUR96.7 million of revenue and an operating loss of EUR4 million. The company is hoping to get several hundred million euros for the champagne unit.

-By Amelie Baubeau, Dow Jones Newswires; [phone]; [e-mail]