Armand de Brignac offered greater than half 1,000,000 bottles in 2019, costs of which run $300 and up.
LVMH’s Moet Hennessy has purchased a 50% stake in Armand de Brignac, a Champagne producer owned by rapper Jay-Z, one other signal of a detailed relationship between the posh trade and hip-hop tradition.
No monetary phrases have been disclosed for Monday’s transaction. Armand de Brignac offered greater than half 1,000,000 bottles in 2019, costs of which run $300 and up.
The rap star has been an investor within the model since 2006, when he touted the model, identified for its Ace of Spades brand on a metallic silver bottle, in a video for “Show Me What You Got.” Jay-Z purchased out Sovereign Brands’s stake within the firm in 2014.
“Armand de Brignac breaks barriers and reflects contemporary luxury, while preserving the tradition of the Champagne terroirs,” Philippe Schaus, chief government officer of LVMH’s Moet Hennessy drinks unit, stated in an announcement.
The model is ready to realize from the luxury-marketing experience and distribution community of LVMH simply because the Champagne trade reels from the pandemic. The market shrank by a fifth final 12 months amid delays and cancellations to weddings and different celebrations. LVMH, whose manufacturers embody Moet & Chandon Champagne and Hennessy Cognac, outperformed, with wine and spirit gross sales dropping 14%.
The deal is the fruit of connections between Jay-Z and Alexandre Arnault, the 28-year previous son of LVMH’s billionaire founder, Bernard Arnault. Alexandre has been taking an even bigger function on the conglomerate, lately being named to assist run Tiffany & Co., which grew to become a part of LVMH final month. He beforehand ran Rimowa after persuading LVMH to amass the German suitcase model.
The rapper threw an Oscars get together final 12 months the place friends like Kanye West and Jack Dorsey may sip his Armand de Brignac Champagne.
LVMH’s wager on international celebrities hasn’t at all times paid off. The luxurious conglomerate introduced earlier this month it was suspending its collaboration with Rihanna for the Fenty style model, lower than two years into that enterprise.
The Wall Street Journal and Financial Times beforehand reported Monday’s deal