Feb 22, 2021 | 3:01 PM
Moët Hennessy Louis Vuitton (LVMH) acquired a 50% stake in the Armand de Brignac champagne brand, owned by rapper and entrepreneur Jay-Z Which sold more than 500,000 bottles during 2019.
“For years we have been following the remarkable success of Armand de Brignac and admire his ability to defy some of the class’s rules. champagne […]”
“We believe that combining our Champagne expertise with our international network, together with Shawn JAY-Z Carter’s vision, the strength of the Armand de Brignac brand and the quality of their prestigious Coffier collection will allow us to take the business to new heights around the world,” said Philip Schhouse. , President and CEO of Moët Hennessy.
The agreement is valued at 50-50 in equity and includes leveraging LVMH’s infrastructure in global distribution. The amount of the transaction was not disclosed.
“It is an association that has felt familiar all the time. We are confident that the sheer strength of Moët Hennessy’s global distribution framework, the strength of its unmatched portfolio and track record of excellence in developing luxury brands will give Armand de Brignac the commercial strength it needs to grow and thrive further.” Said Shawn Jay-Z Carter.
During the fourth quarter of the year, LVMH revenue decreased by 17% according to the financial information.
The wine and spirits sector showed a decrease of 11%, while the fashion component increased by 18%, although it was the only one to perform positively compared to 2019.
The company indicated that after a significant drop in volumes in the second quarter, the champagne business saw improved trends in the second half, particularly in the US.
While Hennessy Cognac, as of June, has registered a strong rebound, mainly driven by demand in the US. In addition, during 2020, acquisitions made in the previous year of Château d’Esclans and Château du Galoupet were included.
Historic luxury brands from around the world have entered into partner deals with celebrities, seeking to appeal to younger clients, including singer and businesswoman Beyoncé, Jay-Z’s wife, who is already involved with sportswear brand Ivy. Park.
Last year, cosmetics company Coty agreed to buy a 20% stake in cosmetics brand KKW from reality TV star Kim Kardashian West, although earlier this month, LVMH halted the Fenty fashion project with the pop star. Rihanna.
With information from Reuters