LVMH and Jay-Z’s Champagne Partnership
Reasons to Celebrate
French luxury goods conglomerate LVMH (LVMUY) and rapper and businessman Jay-Z are working together in the champagne business. LVMH has purchased a 50% stake in Jay-Z’s champagne brand, Armand de Brignac. Financial details of the deal have not yet been disclosed.
The deal has advantages for both parties. LVMH, which is currently the largest champagne producer in the world, will be able to build a relationship with younger, more diverse consumers. Armand de Brignac, which is famous for its metallic bottles which cost hundreds of dollars each, will be able to take advantage of LVMH’s global distribution networks.
Champagne sales have fizzled over the past year because fewer weddings and other celebrations have taken place. LVMH, which owns a number of famous Champagne brands including Veuve Clicquot and Dom Pérignon saw sales of the wine drop 20%.
Meanwhile Jay-Z’s brand has seen growth. In discussing the deal with LVMH, Jay-Z, born Shawn Carter, said, “We were working really hard to maintain a brand that was growing faster than the staff we had and bigger than some of the expertise we had. We’d been in this 15 years, not a hundred.”
A Growing Trend
In addition to Jay-Z’s deal with LVMH, there have been a number of other collaborations between recording artists and the luxury goods industry recently. For example, rapper Gucci Mane and the Italian fashion company Gucci have created a collection together. Rapper A$AP Rocky has been a model for Dior, which is owned by LVMH.
Rihanna launched a number of brands with LVMH in recent years. Her Fenty fashion label was recently discontinued, but she is still partnering with LVMH for her Savage X Fenty lingerie line and two cosmetics lines. Jay-Z says he hopes to partner with LVMH on other luxury goods products in the future.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.