LVMH, which owns Dom Pérignon and Moët & Chandon, has acquired a 50% stake in Jay-Z’s champagne brand, Armand de Brignac, also known as “Ace of Spades.” Terms of the deal were not disclosed.
“LVMH is a brand that has quite broad appeal. It serves many different markets,” said Neil Saunders, retail industry analyst and managing director of GlobalData. By diversifying your marketing efforts and expanding your portfolio, you can help reach “audiences that are very important, but perhaps have traditionally been underrepresented in luxury,” he said. The Jay-Z partnership “certainly helps as part of that effort.”
“For years we have been following the fantastic success of Armand de Brignac and admiring his ability to defy some of the rules of the Champagne category,” said Philippe Schaus, president and CEO of Moet Hennessy, in a statement Monday. “Armand de Brignac breaks barriers and reflects contemporary luxury”.
Shawn Carter, who calls himself Jay-Z, has always been interested in Champagne. He used to defend Cristal, but began a boycott of the brand in 2006 after the director of the company that makes Champagne, Frederic Rouzaud, made disparaging comments about its popularity in the hip-hop community. “What can we do? We can’t stop people from buying it,” Rouzaud told The Economist at the time.
LVMH’s distribution force and its experience in developing luxury brands “will give Armand de Brignac the commercial power it needs to grow and prosper even more,” Jay-Z said in a statement Monday.
– CNN’s Leah Dolan and Allyssia Alleyne contributed to this report.