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 an look in his “Present Me What You Received” music video earlier than it formally launched later that 12 months. He had beforehand endorsed Cristal in his songs earlier than an government of the father or mother firm made disparaging feedback about its position in hip-hop tradition. The rapper, whose given title is Shawn Carter, purchased the remaining half of Armand de Brignac in 2014.
Carter mentioned on CNBC’s “Squawk Field” on Monday that he began having conversations a couple of cope with LVMH in 2019.
“It simply began out in a spot of respect and constructed from there fairly shortly,” he mentioned.
Moet Hennessy CEO Philippe Schaus instructed CNBC’s Becky Fast that Armand de Brignac introduced new shoppers to the champagne class.
“What we might 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. With fewer events and nights out, the coronavirus pandemic has hit champagne gross sales. Business commerce group Comite Interprofessionnel du Vin de Champagne estimated that champagne gross sales fell $1.2 billion, or 18% by quantity, final 12 months.