Luxury goods conglomerate LVMH has purchased a 50 percent stake in Armand de Brignac, a champagne brand owned by Shwan ‘Jay-Z’ Carter. The champagne brand is also famous as ‘Ace of Spades.’ The terms of the deal have not been made public and therefore it is not how much the French conglomerate has paid for the deal. The deal has been signed at a time when LUMH is working on diversifying its offering. According to reports, the value of half of the champagne brand was valued at around USD 250 million in 2018. The company has been criticized for the lack of diversity by many.
Reports suggest that the deal between the hip-hop mogul and the luxury brand happened ‘very naturally’ and the two brands are eager to work together. They will now work to find ways to promote the brand among other luxe champagnes like Veuve Clicquot, Dom Pérignon, and Krug. But the path is going to be tough as they deal comes a time when the champagne industry is going through one of its toughest times. This is because there has been a huge fall in demand for the drink because of the decline in events and celebrations. Most of the restaurants and event destinations have suffered a huge blow because of the COVID-19 pandemic, which directly affected the sales of the drinks.
Meanwhile, LVMH signed start tennis player Naomi Osaka as its new brand ambassador. Osaka was in limelight during the US Open as he extended support to the Black Lives Matter protests. The protest had started over the summer. The company has also signed skateboarder Lucien Clark for skate shoes and apparel. LVMH has been trying to associate with Black celebs for quite some time. Last year, it signed singer Rihanna on Fenty Fashion House. She was the first black woman to be associated with the luxury brand. However, Fenty Fashion House was discontinued recently. However, LVMH said that it will continue to support the other products of the Fenty empire. The focus will be now more on beauty and skincare items along with lingerie lines.