Moet Hennessy buys 50% of Jay-Z’s champagne brand

The rap star has been an investor in the Armand de Brignac brand since 2006.

Armand de Brignac is a Champagne producer owned by rapper and producer Jay-Z.

Luxury wines and spirit firm Moet Hennessy has bought a 50% stake in Armand de Brignac, a Champagne producer owned by rapper Jay-Z, another sign of a close relationship between the luxury industry and hip-hop culture.

No financial terms were disclosed for the transaction. Armand de Brignac sold more than half a million bottles in 2019, prices of which run €250 and up.

The rap star has been an investor in the brand since 2006, when he touted the brand in a video for 'Show Me What You Got'.

“Armand de Brignac breaks barriers and reflects contemporary luxury, while preserving the tradition of the Champagne terroirs,” Philippe Schaus, chief executive officer of LVMH’s Moet Hennessy drinks unit.

The brand is set to gain from the luxury-marketing expertise and distribution network of LVMH just as the Champagne industry reels from the pandemic. The market shrank by a fifth last year amid delays and cancellations to weddings and other celebrations. LVMH, whose brands include Moet & Chandon Champagne outperformed, with wine and spirit sales dropping just 14%.

LVMH’s bet on global celebrities has not always paid off. The luxury conglomerate announced earlier this month it was suspending its collaboration with Rihanna for the Fenty fashion brand, less than two years into that venture.

Bloomberg