Luxury brands conglomerate LVMH (LVMHF) and its Moet Hennessy wine and spirits division have purchased a 50% stake in rapper Jay-Z's luxury champagne brand, Armand de Brignac.
Financial terms of the deal were not disclosed.
Jay-Z and LVMH announced the sale in a Zoom video call with LVMH Moet Hennessy CEO Philippe Schaus last week, according to the New York Times.
Jay-Z, aka Shawn Carter, took an initial 50% stake in Armand in 2006 and premiered the brand in his "Show Me What You Got" music video. He then purchased the rest of the brand in 2014.
"We were always looking to grow this brand and this happened very naturally," Jay-Z said, according to the Times.
The deal gives Jay-Z the organizational support and distribution power of a global drink "machine," Schaus said, according to the Times.
Jay-Z has repeatedly shouted out the champagne's nickname, "Ace of Spades," in multiple songs, and the brand sold more than 500,000 bottles in 2019, according to CNBC.
The deal was initially discussed in the summer of 2019 when Jay-Z hosted a lunch at his house for Bernard Arnault, LVHM's founder and chairman, and Arnault's son Alexandre Arnault, according to the Times.
The coronavirus pandemic and subsequent lockdowns have hurt the liquor industry as fewer club revelers are allowed to congregate and drink alcohol due to social distancing efforts.
However, during the Zoom call, Jay-Z said the spirits market has recovered from its initial sharp revenue and shipment drop off, and has settled at a deficit of 20%.
Ace of Spades is one of the more expensive champagne brands in the world with a bottle costing between $300 and $65,000 for a 30-liter Midas bottle, depending on the branding.