Jay-Z and LVMH join forces for Armand de Brignac champagne
LVMH Group (Louis Vuitton Moët Hennessy) announced taking a 50% stake in the American rapper’s champagne.
Moët Hennessy took a 50% stake in Jay-Z’s Armand de Brignac champagne brand, announced the Wall Street Journal.
Philippe Schaus, chairman and CEO of Moët Hennessy said “we are engaged in an equal partnership with Jay-Z and his family.” For his part, the American rapper and producer said he was “proud to associate the Arnault family with our venture.”
“It’s a strategic alliance that always seemed so obvious to me,” he added. “We are convinced that the power of Moët Hennessy’s worldwide distribution network, the unparalleled strength of its brand portfolio and its long-standing recognized excellence in luxury brand development will give Armand de Brignac the commercial powerhouse fit for development.”
The rapper’s brand is highly successful in the United States, Asia and Europe. In 2019, they sold more than 500 000 bottles, according to the statement.
The champagne market was shaken by the health situation. The crisis disrupted the on-trade and tourism sector in turn. Its worldwide sales fell 18%, forcing producers to negotiate and collectively limit their grape and wine production in 2020 to avoid a price drop linked to overproduction.
Armand de Brignac now besides prestigious champagne brands
In the United States, the champagne business saw “an improvement in trends in the second half of the year”. In fact, champagne is the only French wine that is not subject to the 25% surcharge imposed by the Trump administration, which weighs on the French wine industry because the U.S. market is its main export outlet.
The LVMH group has Dom Pérignon, Moët & Chandon, Mercier, Krug, Ruinart and Veuve Clicquot in its portfolio of brands. Undoubtedly a prestigious achievement for the Armand de Brignac champagne brand.
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