LVMH teams up with rap star Jay-Z to sell his Armand de Brignac Champagne brand
The deal creates alliance between the world of hip-hop and luxury as the Covid-19 pandemic saps sales of the festive wines
Paris — LVMH’s Moet Hennessy has bought a 50% stake in Armand de Brignac, a Champagne producer owned by rapper Jay-Z, another sign of a close relationship between the luxury industry and hip-hop culture.
No financial terms were disclosed for Monday’s transaction. Armand de Brignac sold more than half a million bottles in 2019, prices of which run $300 and up.
The rap star has been an investor in the brand since 2006, when he touted the brand, known for its Ace of Spades logo on a metallic silver bottle, in a video for “Show Me What You Got”. Jay-Z bought out Sovereign Brands’s stake in the company in 2014.
“Armand de Brignac breaks barriers and reflects contemporary luxury, while preserving the tradition of the Champagne terroirs,” Philippe Schaus, CEO of LVMH’s Moet Hennessy drinks unit, said in a statement.
The brand is set to gain from the luxury-marketing expertise and distribution network of LVMH just as the Champagne industry reels from the pandemic. The market shrank by a fifth in 2020 amid delays and cancellations to weddings and other celebrations. LVMH, whose brands include Moet & Chandon Champagne and Hennessy Cognac, outperformed, with wine and spirit sales dropping 14%.
The deal is the fruit of connections between Jay-Z and Alexandre Arnault, the 28-year-old son of LVMH’s billionaire founder, Bernard Arnault. Alexandre has been taking a bigger role at the conglomerate, recently being named to help run Tiffany, which became part of LVMH in January. He previously ran Rimowa after persuading LVMH to acquire the German suitcase brand.
The rapper threw an Oscars party in 2020 where guests such as Kanye West and Jack Dorsey could sip his Armand de Brignac Champagne.
LVMH’s bet on global celebrities hasn’t always paid off. The luxury conglomerate announced earlier in February it was suspending its collaboration with Rihanna for the Fenty fashion brand, less than two years into that venture.
The Wall Street Journal and Financial Times previously reported Monday’s deal.
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