LVMH, which owns Dom Pérignon and Moët & Chandon, has taken a 50% stake in Jay-Z’s Champagne brand Armand de Brignac, also known as “Ace of Spades.” The terms of the deal were not disclosed.
“LVMH is a brand that has quite a wide appeal. It serves lots of different markets,” said Neil Saunders, retail industry analyst and managing director of GlobalData. By diversifying its marketing efforts and expanding its portfolio, it can help reach “audiences that are very important, but perhaps have been traditionally underrepresented in luxury,” he said. The partnership with Jay-Z “certainly helps as part of that effort.”
“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,” said Philippe Schaus, president and CEO of Moet Hennessy, in a release Monday. “Armand de Brignac breaks barriers and reflects contemporary luxury.”
Shawn Carter, who goes by Jay-Z, has long had an interest in Champagne. He used to champion Cristal, but began a boycott of the brand in 2006 after the head of the company that makes that Champagne, Frederic Rouzaud, made disparaging remarks about its popularity in the hip-hop community. “What can we do? We can’t forbid people from buying it,” Rouzaud told The Economist at the time.
LVMH’s distribution strength and experience developing luxury brands “will give Armand de Brignac the commercial power it needs to grow and flourish even further,” said Jay-Z in a statement Monday.
— CNN’s Leah Dolan and Allyssia Alleyne contributed to this report.