Moet Hennessy, the wine and spirits division of luxury conglomerate LVMH, announced Monday the purchase of a 50% stake in rapper Jay-Z’s champagne brand, Armand de Brignac.
Financial terms of the deal were not disclosed.
Jay-Z’s relationship with Armand de Brignac started in 2006 with a 50% stake in the brand and debuted in his “Show Me What You Got” music video before it officially launched later that year. He had previously endorsed Cristal in his songs before an executive of Louis Roederer made disparaging comments about its role in hip-hop culture. The rapper, whose given name is Shawn Carter, bought the remaining half of Armand de Brignac in 2014.
Carter said on CNBC’s “Squawk Box” on Monday that he started having conversations about a deal with LVMH in 2019.
“It just started out in a place of respect and built from there pretty quickly,” he said.
Moet Hennessy CEO Philippe Schaus told CNBC’s Becky Quick that Armand de Brignac brought new consumers to the champagne category.
“What we could bring to the brand, which is already very successful, is the sheer power of our international distribution network,” Schaus said.
The brand, which is known by the nickname “Ace of Spades,” sold more than 500,000 bottles in 2019.
The coronavirus pandemic has hit champagne sales, with people having fewer parties and nights out. Industry trade group Comite Interprofessionnel du Vin de Champagne estimated that champagne sales fell $1.2 billion, or 18% by volume, last year.
Courtesy of CNBC
Text: Amelia Lucas