Moet Hennessy, the wine and spirits division of the French conglomerate LVMH, announced that it bought 50% of Armand de Brignac. The American rapper and businessman Jay-Z owns the champagne brand.
Jay-Z initially bought 50% of the champagne brand also known as the “Ace of Spades” in 2006, and it became the sole stakeholder in 2014.
According to WSJ, the deal between Jay-Z and LVMH aims to grow Armand de Brignac’s global distribution. Moreover, this is not the first time the French conglomerate seeks to be more inclusive and target a diverse clientele. In the past years, artists like Rihanna, Gucci Mane, and ASAP Rocky worked together with European brands such as LVMH, Gucci, and Dior.
However, the deal came when parties and nights out are limited, affecting champagne sales. According to the Comite Interprofessionnel du Vin de Champagne, the champagne sales fell around $1.2 billion, or 18% by volume in 2020.
The financial terms of the deal weren’t made public.
After the news hit the wires, LVMH stock price lost 0.35%.
Sources: wsj.com, cnbc.com, finance.yahoo.com