Armand de Brignac sold more than half a million bottles, priced at $ 300 or more, in 2019.
Moet Hennessy of LVMH bought 50% of the shares of Armand de Brignac, a champagne producer from rapper Jay-Z, another sign of a close relationship between the luxury industry and hip-hop culture.
No financial terms were released for Monday’s transaction. Armand de Brignac sold more than half a million bottles in 2019, priced at $ 300 or more.
The rap star has been investing in the brand since 2006, when he released the brand, known for its Ace of Spades logo on a metallic silver bottle, in a “Show Me What You Got” video. Jay-Z bought Sovereign Brands’ stake in the company in 2014.
“Armand de Brignac breaks down barriers and reflects contemporary luxury, while preserving the tradition of Champagne terroirs,” said Philippe Schaus, executive director of LVMH’s Moet Hennessy beverage unit, in a statement.
The brand is ready to gain from LVMH’s luxury marketing and distribution network experience, just as the Champagne industry is reeling from the pandemic. The market shrank a fifth last year amid delays and cancellations at weddings and other celebrations. LVMH, whose brands include Moet & Chandon Champagne and Hennessy Cognac, has surpassed itself, with sales of wines and spirits falling 14%.
The deal is the result of connections between Jay-Z and Alexandre Arnault, the 28-year-old son of billionaire founder of LVMH, Bernard Arnault. Alexandre has taken on a greater role in the conglomerate, having recently been appointed to help manage Tiffany & Co., which joined LVMH last month. He previously commanded Rimowa after persuading LVMH to acquire the German suitcase brand.
The rapper threw an Oscar party last year, where guests like Kanye West and Jack Dorsey were able to sip their Armand de Brignac champagne.
LVMH’s bet on global celebrities has not always worked. The luxury conglomerate announced earlier this month that it was suspending its collaboration with Rihanna for the fashion brand Fenty, less than two years ago.
The Wall Street Journal and the Financial Times previously reported Monday’s deal