LVMH's wine and spirits division Moet Hennessy is buying a 50% stake in rap star Jay-Z's Armand de Brignac champagne brand, becoming the latest luxury brand to try to broaden its appeal with a celebrity tie-up.
"I'm proud to welcome the Arnault family into ours through this partnership," the "Empire State of Mind" singer said in a statement, referring to the family that runs LVMH, the world's biggest luxury goods company.
Financial terms of the deal were not disclosed.
Historic luxury brands around the world have struck partnership deals with celebrities, seeking to appeal to younger customers, with Jay-Z's pop star wife Beyonce already involved in the Ivy Park sportswear brand, reports Reuters. Few weeks ago, her sports apparel brand Ivy Park x Adidas released its third collection of merchandise. The collection offers "icy" shades including white, light blue, pink and multi-color ski tag prints, with items like a knit catsuit, latex dress and monogrammed track jacket. This is Beyoncé's third collection since she inked a deal with Adidas in 2019.
Last year, cosmetics company Coty agreed to buy a 20% stake in reality TV star Kim Kardashian West's makeup brand KKW, although earlier this month LVMH put on hold its Fenty fashion venture with pop star Rihanna.
The LVMH company said the purchase also involved a distribution deal and would kick off a partnership reflecting a "shared vision" between the singer and the company, reports AFP.
Jay-Z's champagne brand, known informally as Ace of Spades, had been "a fantastic success", Moet Hennessy CEO Philippe Schaus said in a joint statement with Jay-Z.
"Armand de Brignac breaks barriers and reflects contemporary luxury, while preserving the traditions of the Champagne terroirs," he said.
Jay-Z, quoted in the press statement, said "it is a partnership that has felt familiar the entire time", adding he was confident that "the sheer power of the Moet 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."