in

LVMH acquires 50% of rapper Jay-Z’s champagne brand

The luxury giant LVMH has taken, via its house Moët Hennessy, a 50% stake in the champagne brand Armand de Brignac of the famous American rapper and producer Jay-Z, we learned on Monday, confirming information from the Wall Street Journal.

This agreement includes a 50% stake in Armand de Brignac by Moët Hennessy as well as the takeover of global distribution, it is specified in the press release. “We are entering into an equal deal with Jay-Z and his family”, specifies Philippe Schaus, Chairman and CEO of Moët Hennessy.

“I am proud to include the Arnault family in our adventure,” Jay-Z said in the statement. “It’s a strategic alliance that has always seemed obvious to me,” he adds, “we are convinced that the power of Moët Hennessy’s global distribution network, the unparalleled strength of its portfolio and its long-recognized excellence date in the development of luxury brands will give Armand de Brignac the commercial power it needs to develop “.

The American rapper’s champagne brand is enjoying worldwide success thanks to a strong presence in North America, Asia and Europe, with more than 500,000 bottles sold in 2019, the press release said.

This equity investment comes at a time when champagne consumption fell drastically in 2020 with the end of tourism and the hotel industry due to the health crisis.

Global sales have plunged 18%, forcing producers and traders to collectively limit their grape and wine production in 2020 to avoid a price collapse linked to overproduction.

The LVMH group, which owns the Dom Pérignon, Moët & Chandon, Mercier, Krug, Ruinart and Veuve Clicquot houses, indicated at the end of January “that after a significant drop in volumes in the second quarter” 2020, the champagne activity had experienced ” an improvement in trends in the second half of the year, particularly in the United States “.

In fact, champagne is the only French wine not to suffer the 25% surtax imposed by the Trump administration, which weighs on the French wine industry because the American market is its main export outlet.

Marilyn Manson is investigated by the police after allegations of domestic violence – Latest News, Breaking News, Top News Headlines

Big gaffes from famous investors