PARIS: French drinks group Remy Cointreau is in exclusive negotiations to sell its loss-making champagne business to privately-held company EPI.

Analysts value the unit, which comprises the Charles Heidsieck and Piper-Heidsieck brands, at around 400 mln euros or roughly four times its sales.

Societe Europeenne de Participations Industrielles (EPI), the holding of the Descours Familty, owns a number of upmarket French brands including J.M. Weston shoes or the Bonpoint children's clothing company.

Last November, Remy Cointreau surprised investors by announcing it intended to sell its champagne division to focus on its fast-growing cognac brands.

The champagne division had 2009/10 sales of 97 million euros -- or 12 percent of the group total.

It has promised to break even this year after suffering an operating loss of 4 million last year amid a global economic slowdown.

Its inventories of 40 million bottles -- four years of stocks -- and its 800 hectares of vineyards made it an attractive target in a champagne sector known for its strict production criteria, analysts say.