Moet Hennessy, the wine and spirits division of luxurious conglomerate LVMH, announced Monday the steal of a 50% stake in rapper Jay-Z’s champagne brand, Armand de Brignac.
Financial terms of the deal weren’t disclosed.
Jay-Z’s relationship with Armand de Brignac began in 2006 with a 50% stake in the brand and debuted in his “Demonstrate Me What You Obtained” song video sooner than it officially launched later that 12 months. He had previously endorsed Cristal in his songs sooner than an government of Louis Roederer made disparaging feedback about its role in hip-hop culture. The rapper, whose given title is Shawn Carter, bought the remaining half of Armand de Brignac in 2014.
Carter talked about on CNBC’s “Pronounce Field” on Monday that he began having conversations about a deal with LVMH in 2019.
“It correct began out in a dwelling of respect and constructed from there rather instant,” he talked about.
Moet Hennessy CEO Philippe Schaus instructed CNBC’s Becky Swiftly that Armand de Brignac introduced contemporary shoppers to the champagne class.
“What we might per chance per chance bring to the brand, which is already very successful, is the sheer vitality of our international distribution network,” Schaus talked about.
The brand, which is identified by the nickname “Ace of Spades,” sold bigger than 500,000 bottles in 2019. With fewer events and nights out, the coronavirus pandemic has hit champagne sales. Industry trade physique of workers Comite Interprofessionnel du Vin de Champagne estimated that champagne sales fell $1.2 billion, or 18% by quantity, final 12 months.