World-renowned rapper and business mogul, Jay-Z, adds champagne to his million-dollar businesses with new partnership. Armand de Brignac, which is known as ‘Ace of Spades’ for its vibrant metallic bottles, has done exceptionally well in 2019, selling over 500,000 bottles. Ace of Spades has done so well that Moët Hennessy, the world leader in luxury wines and spirits, has taken 50% stake in the rapper's company.
In 2004, the famous rapper had bought Armand de Brignac. The investment came after the 2006 boycott of Cristal champagne. An executive at that brand made disparaging remarks about rap consumers, according to Forbes. The partnership gives LVMH's Moët Hennessy a global distribution agreement with several marquee wines and spirits under its umbrella. Some of the popular and well-known spirits include Dom Perignon, Veuve Clicquot, Krug and Château d'Yquem.
The partnership was originally discussed in 2019 and has only grown stronger, thanks to the relationship between Jay-Z and Alexandre Arnault, the son of LVMH founder and chairman Bernard Arnault. The world-renowned rapper described the friendship between him and Arnault as "super chill" and "natural."
“[Alexandre] always keeps his word, very punctual. These are some of the qualities I have myself," Jay-Z stated in his interview with the New York Times.
Some may think that during a pandemic isn't the best time to invest in champagne, however, LVMH is playing it smart. The French company isn't only buying a drink brand, but they are putting their foot in the door to introduce themselves into markets that are not served by its brand. The partnership between the French company and American businessman opens up a future of possibility and gives hope for the post-pandemic attitude of consumers.
Champagne sales were on the uptick pre-pandemic, and in 2019, boasted its seventh consecutive year of record sales in the U.S., according to Forbes. A staggering 297 million bottles of Champagne were exported, with 25 million of those heading to the United States. Definitely not a bad time to invest in Champagne.
The Brooklyn native is known as a global business mogul and is savvy with his various businesses and investments, such as a stake in Uber worth an estimated $70 million, part-owner of the Brooklyn Nets NBA team, and founder of an entertainment agency, Roc Nation.
Congratulations to Jay-Z and LVMH's collaboration! We are sure it's going to be a great success.
Sources: Instagram- @armanddebrignac, Forbes, New York Times