Jay-Z’s Champagne and Earlier Success
Hip hop artist Jay-Z began his partial ownership of Armand de Brignac back in 2006 after buying 50% of the company and then featuring it prominently in subsequent music videos. In 2014, Jay-Z subsequently purchased the remaining 50% of the company to own it outright, allowing him to focus more heavily on growing the brand. His focus on business growth paid off heavily in the following years, with Armand de Brignac selling over 500,000 bottles in 2019, an impressive feat for a single brand.
Unfortunately, following this incredibly lucrative year, the champagne business as a whole took a massive dive in 2020. As the COVID-19 pandemic restricted in-person gatherings and any large celebrations, champagne sales took a massive nosedive over the course of the year. In fact, sales fell by over $1.2 billion in 2020, translating to an 18% decline overall. This drop in sales across the entire business led to a need for a larger sales and distribution scope, which LVMH was willing to provide.
Partnership With LVMH
LVMH and Armand de Brignac recently announced a new partnership that would see the wine and spirit company take a 50% stake in the champagne brand. The partnership will also include a major global distribution deal to help increase business through a larger selection of channels. The wine and spirit company will be featuring Armand de Brignac prominently among its already large selection of champagne and sparkling wine brands. The financial details of the business deal have not been disclosed.
Business looks to be trending in the right direction for champagne, though, as reopenings around the world should certainly lead to an uptick of public gatherings and celebrations. The wine and spirits company plans to continue pushing that trend in the right direction.
When commenting on the business deal between the company and champagne brand in a released statement, Jay-Z said, “I'm proud to welcome the Arnault family into ours through this partnership that began with Alexandre Arnault and continued with his father Bernard Arnault and Philippe Schaus, at my home in Los Angeles. It is a partnership that has felt familiar the entire time. We are confident that the sheer power of the Moët 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.”