Biggest luxury group bought half of Jay-Z’s champagne brand

 

Jay-Z is teaming up with the biggest luxury group. Jay-Z bought the “Ace of Spades” luxury champagne brand in 2014.

Moët Hennessy, the world leader in luxury wines and spirits announced a partnership with Shawn JAY-Z Carter through the acquisition of a 50% stake in Armand de Brignac prestige champagne brand.

With its striking look and natural appeal to a global and diverse luxury consumer, Armand de Brignac has brought unprecedented innovation and energy to the Champagne category since 2006. It has been a worldwide success with a strong presence in North America, Asia, and Europe, and over 500 000 bottles sold in 2019, in particular with an outstanding position in the high energy channels.

The partnership will be anchored in the acquisition of a 50% stake in Armand de Brignac by Moët Hennessy as well as in a global distribution agreement. The 50%-50% structure is an essential element of this alliance and ensures that each of the two partners wants to bring its strengths and expertise.

“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,” said Philippe Schaus, President & CEO of Moët Hennessy.

“I’m proud to welcome the Arnault family into ours through this partnership that began with Alexandre Arnault and continued with his father Bernard Arnault and Philippe Schaus, at my home in Los Angeles. It is a partnership that has felt familiar the entire time. We are confident that the sheer power of the Moët Hennessy global distribution framework, its unparalleled portfolio strength and its long-established track record of excellence in developing luxury brands will give Armand de Brignac the commercial power it needs to grow and flourish even further,” said Shawn JAY-Z Carter.

Carter said on CNBC’s “Squawk Box” on Monday that he started having conversations about a deal with LVMH in 2019.

The coronavirus pandemic has hit champagne sales, with people having fewer parties and nights out. According to CNBC, Industry trade group Comite Interprofessionnel du Vin de Champagne estimated that champagne sales fell $1.2 billion, or 18% by volume, last year.