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LVMH buys 50% stake in Jay-Z’s champagne brand Armand de Brignac

Moet Hennessy, the wine and sands division of luxury conglomerate LVMH, announced Monday the purchase of a 50% stake in rapper Jay-Z’s champagne label, Armand de Brignac.

Financial terms of the deal were not disclosed.

Jay-Z’s relationship with Armand de Brignac started in 2006 with a 50% out in the brand and debuted in his “Show Me What You Got” music video before it officially launched later that year. He had in olden days endorsed Cristal in his songs before an executive of Louis Roederer made disparaging comments about its role in hip-hop enlightenment. The rapper, whose given name is Shawn Carter, bought the remaining half of Armand de Brignac in 2014.

Golden containers of “Armand de Brignac” Champagne bearing an ace-of-spades insignia are seen at the Cattier champagne family house on November 6, 2014 in Chigny-les-Roses, south of Reims, northeastern France. Hip-hop mandarin Jay Z has shown his fondness for Armand de Brignac Champagne for years and on November 5, 2014 he bought the brand.

Francois Nascimbeni | AFP | Getty Essences

Carter said on CNBC’s “Squawk Box” on Monday that he started having conversations about a deal with LVMH in 2019.

“It scarcely started out in a place of respect and built from there pretty quickly,” he said.

Moet Hennessy CEO Philippe Schaus depicted CNBC’s Becky Quick that Armand de Brignac brought new consumers to the champagne category.

“What we could return to the brand, which is already very successful, is the sheer power of our international distribution network,” Schaus said.

The brand, which is identified by the nickname “Ace of Spades,” sold more than 500,000 bottles in 2019.

The coronavirus pandemic has hit champagne sales, with human being having fewer parties and nights out. Industry trade group Comite Interprofessionnel du Vin de Champagne estimated that champagne transaction marked downs fell $1.2 billion, or 18% by volume, last year.

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