JAY Z SELL'S 50% OF HIS CHAMPAGNE BRAND TO LVMH
Moët Hennessey, the wine and spirits division of the luxury conglomerate LVMH, has acquired a 50% stake in Armand de Brignac, the high-end Champagne brand owned by Rapper and mogul, Jay-Z ...
The brand one of the youngest in the famed sparkling wine region commonly known by its nickname “Ace of Spades,” due to its striking logo has seen rapid growth and popularity since the rapper invested in the brand in 2006, after featuring it in his "Show Me What You Got" music video before taking full control in 2014 after buying Sovereign Brands’s stake in the company.
“For years we have been following the fantastic success of Armand de Brignac and admiring their ability to challenge some of the rules of the Champagne category. Often referred to as “Ace of Spades”, Armand de Brignac breaks barriers and reflects contemporary luxury, while preserving the traditions of the Champagne terroirs. Today, we are incredibly proud to be partnering with them and believe that the combination of our Champagne experience and international network coupled with Shawn JAY-Z Carter’s vision, the strength of the Armand de Brignac brand and quality of its range of prestige cuvées will allow us to take the business to new heights across the world”, says Philippe Schaus, President & CEO of Moët Hennessy.
The partnership comes at a time when LVMH is working to appeal to a more diverse clientele and expand it's celebrity endorsement.
“I’m proud to welcome the Arnault family into ours through this partnership that began with Alexandre Arnault and continued with his father Bernard Arnault and Philippe Schaus, at my home in Los Angeles. It is a partnership that has felt familiar the entire time. We are confident that the sheer power of the Moët Hennessy global distribution framework, its unparalleled portfolio strength and its long-established track record of excellence in developing luxury brands will give Armand de Brignac the commercial power it needs to grow and flourish even further” said JAY-Z.
The partnership will be anchored in the acquisition of a 50% stake in Armand de Brignac by Moët Hennessy as well as in a global distribution agreement. The 50%-50% structure is an essential element of this alliance and ensures that each of the two partners wants to bring its strengths and expertise to ensure the success of this long-term alliance.
Financial terms of the deal were not disclosed.