LVMH buys 50% stake in Jay-Z’s champagne model Armand de Brignac
Moet Hennessy, the wine and spirits division of luxurious conglomerate LVMH, introduced Monday the acquisition of a 50% stake in rapper Jay-Z’s champagne model, Armand de Brignac.
Monetary phrases of the deal weren’t disclosed.
Jay-Z’s relationship with Armand de Brignac began in 2006 with a 50% stake within the model and debuted in his “Present Me What You Acquired” music video earlier than it formally launched later that 12 months. He had beforehand endorsed Cristal in his songs earlier than an govt of Louis Roederer made disparaging feedback about its position in hip-hop tradition. The rapper, whose given identify is Shawn Carter, purchased the remaining half of Armand de Brignac in 2014.
Golden bottles of “Armand de Brignac” Champagne bearing an ace-of-spades insignia are seen on the Cattier champagne household home on November 6, 2014 in Chigny-les-Roses, south of Reims, northeastern France. Hip-hop mogul Jay Z has proven his fondness for Armand de Brignac Champagne for years and on November 5, 2014 he purchased the model.
Francois Nascimbeni | AFP | Getty Photos
Carter mentioned on CNBC’s “Squawk Field” on Monday that he began having conversations a couple of take care of LVMH in 2019.
“It simply began out in a spot of respect and constructed from there fairly rapidly,” he mentioned.
Moet Hennessy CEO Philippe Schaus advised CNBC’s Becky Fast that Armand de Brignac introduced new shoppers to the champagne class.
“What we may convey to the model, which is already very profitable, is the sheer energy of our worldwide distribution community,” Schaus mentioned.
The model, which is understood by the nickname “Ace of Spades,” offered greater than 500,000 bottles in 2019.
The coronavirus pandemic has hit champagne gross sales, with folks having fewer events and nights out. Trade commerce group Comite Interprofessionnel du Vin de Champagne estimated that champagne gross sales fell $1.2 billion, or 18% by quantity, final 12 months.