Global luxury conglomerate and Moet & Chandon parent company LVMH (OTC: LVMUY) bought a 50% stake in rival high-end champagne company, Armand de Brignac, The Wall Street Journal reported.
What Happened: Armand is owned by rapper and mogul Shawn “Jay-Z” Carter. It’s among the youngest champagne brands and best known for its iconic metallic bottles that sell for hundreds of dollars each. A combination with LVMH will help Armand realize superior growth by tapping LVMH’s existing global distribution networks.
Jay-Z invested in Armand in 2014 and later on bought out his partner, spirits company Sovereign Brands.
Jay-Z told WSJ his brand has been growing faster than expected and it was a challenge to maintain the brand. The youth of his company may have also played a role in accepting an investment from LVMH.
“We’d been in this 15 years, not a hundred,” Carter said.
Financial terms of the transaction were not disclosed. The combination may have started several years ago when Jay-Z met LVMH CEO Bernard Arnault’s son, Alexandre, in Paris.
Related Link: Why Shawn ‘Jay-Z’ Carter Took His Cannabis Brand Public, And Other Highlights From The KCSA Cannabis Investor Conference
Why It’s Important: The investment could also be due to the COVID-19 pandemic as a surge in canceled weddings and other celebrations resulted in a 20% decrease in champagne sales in 2020.
But to say the brand or industry is in peril might be a mistake.
“We’re connecting with things that are well made, and things that survive,” Jay-Z said.
What’s Next: Jay-Z said he will likely collaborate with LVMH on other projects in the future.
(Photo: Jay-Z, Joella Marano via Wiki Commons; champagne, Armand de Brignac)
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