The famous American rapper Jay-Z signs an agreement with the luxury giant LVMH Moët Hennessy; the latter brings a 50% stake in Armand de Brignac, the rapper’s champagne brand. It also proposes to take over the worldwide distribution of the brand.
The famous American rapper Jay-Z signs an agreement with the luxury giant LVMH Moët Hennessy; the latter brings a 50% stake in Armand de Brignac, the rapper’s champagne brand. It also proposes to take over the worldwide distribution of the brand.
Jay-Z for his part declares: “I am proud to associate the Arnault family to our adventure. It’s a strategic alliance that has always seemed obvious to me. We are convinced that the strength of Moët Hennessy’s global distribution network, the unrivalled strength of its portfolio and its long-standing reputation for excellence in the development of luxury brands will give Armand de Brignac the commercial power it needs to grow”.
No financial information has yet been released regarding Monday’s transaction. However, the rapper’s brand is proving to be a real success because of its strong presence in North America, Asia and Europe. With more than 500,000 bottles sold in 2019.
The Federation of the Swiss Watch Industry also announced that exports of timepieces worth less than 3,000 Swiss francs at export price suffered a significant contraction in January, although it did not give figures. Watch exports of over 3,000 Swiss francs showed a decline of 4.1%.
The first relations between the rapper and the Armand de Brignac brand
First published in a video clip entitled “Show Me What You Got”, the champagne brand was first promoted by rapper Jay-Z in 2006. At the time, Jay-Z was just one of the company’s investors.
However, it was not until 2014 that he bought the American group Sovereign Brands’ stake in the company. “He expressed his interest in owning the brand and made us an offer that we simply couldn’t refuse,” said a spokeswoman for the group.
A new lease of life for the champagne brand
The LVMH group will thus be able to breathe new life into the brand, by giving it the benefit of its expertise and its distribution network in the field of luxury marketing.
For his part, the rapper did not miss the opportunity to offer his champagne to celebrities such as Kanye West and Jack Dorsey, who were invited by Jay-Z at an Oscar night last year.
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Featured Photo : © Dimitrios kambouris/ Getty images for Rihanna
