LVMH, the luxury goods group behind Louis Vuitton and Moet champagne, said it has agreed to purchase a 50% stake in Armand de Brignac, a high-end champagne brand owned by rapper Jay-Z.
The musician said on Monday that he had sold half of the company to LVMH for an undisclosed sum, having originally purchased the business in 2014 and which in 2019 sold around half a million bottles with price tags ranging from US$300 to US$950 each.
"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", president and chief executive of Moët Hennessy Philippe Schaus said in a statement.
LVMH’s move into Armand forms part of a trend of major firms inking partnerships with celebrities in order to broaden their appeal and tap into younger markets.
In August last year, FTSE 100 booze maker Diageo PLC (LON:DGE) added Aviation American Gin, one of the US’s top super-premium gin brands fronted by Hollywood A-lister Ryan Reynolds, to its portfolio for US$610mln.
The consideration comprised an initial payment of $335mln and a further potential consideration of up to $275mln based on the performance of Aviation American Gin over ten years.