Hip-hop mogul, Jay-Z has sold 50 per cent of his champagne brand, Armand de Brignac also known as Ace of Spades, to French multinational corporation and conglomerate, LVMH Moët Hennessy Louis Vuitton, commonly known as LVMH.
After buying the company in 2014 for an estimated $30 million, the Roc Nation founder increased annual sales from 60k to 500k bottles in 2019. “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 to ensure the success of this long-term alliance”, the statement reads.
Ace of Spades had been “a fantastic success”, Moet Hennessy CEO Philippe Schaus said in a joint statement with Jay-Z. “Armand de Brignac breaks barriers and reflects contemporary luxury while preserving the traditions of the Champagne terroirs,” he said.
He further stated that his company had been interested in the brand for its appeal to a “global and diverse luxury consumer”. “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,” he said.
Jay-Z, quoted in the statement, said “it is a partnership that has felt familiar the entire time”, adding he is confident that “the sheer power of the Moet 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”.
According to the New York Times, the deal was originally discussed in 2019 when Jay-Z hosted a lunch at his house for Bernard Arnault, LVMH’s founder and chairman, and Alexandre Arnault.
– Bella Naija