* Fiscal Q1 sales down
* Sharp drop in demand for champagne and cognac
* Confident can withstand difficult market environment
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PARIS, July 16 (Reuters) - Remy Cointreau sales in its fiscal first quarter fell 14.1 percent on a like-for-like basis, hit by a sharp drop in demand for champagne and cognac, the French spirits group said on Thursday.
But Remy Cointreau, which owns Remy Martin cognac and Piper-Heidsieck champagne, said it felt confident its new distribution system would enable it to "withstand the difficult economic environment affecting some of its markets".
The group said demand for cognac was sustained in China, already one of the largest markets for cognac for rival Pernod Ricard, but overall Remy Cointreau's cognac sales fell 15.2 on a comparable basis to 63.7 million euros.
The quarter, traditionally the weakest for champagne sales, saw a drop of 40.7 percent in revenues from the bubbly wine on a like-for-like basis to 13.6 million euros ($19.11 million).
Group revenues overall reached 138.6 million euros in the quarter to June, down 7.5 percent on a reported basis.
Remy also proposed a dividend of 1.30 euros.
Pernod Ricard publishes its trading update on Friday. ($1=.7118 Euro) (Reporting by Astrid Wendlandt; Editing by Jon Loades-Carter)