UPDATE 2-Remy Cointreau sees champagne shake-out

(Rewrites with managing director's comments)

By Nick Antonovics

PARIS, Nov 27 (Reuters) - French wines and spirits group Remy Cointreau (RCOP.PA: Quote, Profile, Research, Stock Buzz) predicted a further shake-out in the 5 billion euro champagne industry as it unveiled in-line first half profits and painted an optimistic view of its future.

Remy Cointreau Managing Director Jean-Marie Laborde said rising grape prices were likely to squeeze smaller players in coming years, leading to the disappearance of minor champagne brands.

He said Remy had doubts about proposals to enlarge champagne's area to seek to head off potential grape shortages.

"There are today in Champagne around 100 million bottles which I consider to be sold badly, which are the own label brands," Laborde told reporters on the margins of a conference to present the firm's first half figures.

"It's clear there will be consolidation among the brands."

The maker of Cointreau liqueur and Remy Martin cognac said on Tuesday first-half net profit fell to 38.1 million euros