The partnership which reflects a shared vision between Moët Hennessy and the hip-hop star will be anchored in the acquisition of a 50% stake in Armand de Brignac by Moët Hennessy. However, the two sides are yet to disclose the value of the transaction.
READ: Louis Vuitton acquires American jeweller, Tiffany for $16 billion
What they are saying
Philippe Schaus, the President & CEO of Moët Hennessy, in his statement, said:
“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.
“Often referred to as “Ace of Spades”, Armand de Brignac breaks barriers and reflects contemporary luxury, while preserving the traditions of the Champagne terroirs. Today, we are incredibly proud to be partnering with them and believe that the combination of our Champagne experience and international network coupled with Shawn JAY-Z Carter’s vision, the strength of the Armand de Brignac brand and quality of its range of prestige cuvées will allow us to take the business to new heights across the world.”
READ: Interswitch to launch multi-currency prepaid card with Kenya’s credit bank
What this partnership means
- Prior to the partnership agreement, Armand de Brignac was wholly owned by Jay-Z, as he increased his stakes in the Champagne brand to 100%, with the acquisition of Sovereign Brand stakes.
- In the light of the partnership deal, the 50-50 ownership structure is essential to the alliance between Jay-Z’s brand and LVMH, as it ensures equal terms, strengths and expertise of the parties to ensure the long-term success of the brand.
- The alliance between Moët Hennessy and Armand de Brignac, can be seen as the coming together of the world of hip-hop and luxury, as both parties seek out strategies to place wine sales back at pre-pandemic levels, with the Covid-19 pandemic adversely impacting the sales of wine world-wide.
- The partnership is expected to grow Armand de Brignac through LVMH’s global distribution networks, as the brand is expected to leverage the conglomerate’s vast resources within the Champagne wine market segments. It comes at a difficult moment for Champagne.
In case you missed it
- Moet and Chandon Global Ambassador, Pierre Louis Arraud says Nigeria may be its biggest market in Africa, ahead of South Africa and Kenya.
- Diageo Holdings Plc, the world’s largest spirits maker has completed the acquisition of Aviation American Gin and its parent company Davos brands, co-owned by Hollywood star actor, Ryan Reynolds.