In Armand de Brignac, a Champagne producer owned by rapper Jay-Z, LVMH’s Moet Hennessy has acquired a 50 percent stake, another indication of a close partnership between the luxury industry and hip-hop community.
For Monday’s deal, no financial terms were disclosed. In 2019, Armand de Brignac sold more than half a million bottles, with prices varying from $300 and up.
“Since 2006, when he endorsed the brand, known for its Ace of Spades logo on a metallic silver bottle, in a video for “Show Me What You Got,” the rap star has been an investor in the brand. In 2014, Jay-Z purchased Sovereign Brands’ stake in the company.
“Armand de Brignac breaks barriers and reflects contemporary luxury, while preserving the tradition of the Champagne terroirs,” Philippe Schaus, chief executive officer of LVMH’s Moet Hennessy drinks unit, said in a statement.
Just as the Champagne industry reels from the pandemic, the brand is expected to benefit from LVMH’s luxury marketing experience and distribution network. In the midst of delays and cancellations of weddings and other celebrations, the market shrank by a quarter last year. With wine and spirit sales down 14 percent, LVMH, whose brands include Moet & Chandon Champagne and Hennessy Cognac, outperformed.
The transaction is the fruit of ties between Jay-Z and Alexandre Arnault, the 28-year-old son of Bernard Arnault, the billionaire founder of LVMH. Alexandre has been playing a greater role in the conglomerate, having recently been assigned to help manage Tiffany & Co., which last month became part of LVMH. After persuading LVMH to acquire the German suitcase brand, he previously ran Rimowa.
Last year, the rapper hosted an Oscar party where guests such as Kanye West and Jack Dorsey were able to drink his Armand de Brignac Champagne.
LVMH hasn’t always paid off by betting on global celebrities. Earlier this month, the luxury conglomerate revealed it was terminating its relationship with Rihanna for the fashion brand Fenty, less than two years into that venture.
Earlier on Monday, the Wall Street Journal and Financial Times announced the deal