One of America's most influential hip-hop artists, Jay-Z, has recently sold 50% of his champagne brand LVMH
The goal for the collaboration and investment that LVMH will place is geared toward growing the brand of Jay-Z's Armand de Brignac, which is occurring at an especially difficult time because of the pandemic. The pandemic has caused many inconveniences, such as the cancellation of weddings, soirees, and other such events that would require champagne, which has caused sales to go down by 20%.
Jay-Z said in an interview with the Wall Street Journal: "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'ved been in this [industry for] 15 years, not a hundred."
The collaboration between LVMH and Jay-Z is also demonstrating the significance of diversity, given that European luxury brands is now proven to be more accepting of other cultures and ethnic backgrounds, particularly black musicians who are part of the hip-hop culture.
LVMH, which also owns other champagne brand names such as Dom Perignon and Veuve Cliquot, plans to establish a partnership with Jay-Z in which he will prove to help the company grow significantly. The financial details of the partnership still remain undisclosed, but some specific valuations have been hinted at by Jay-Z in his lyrics.
Jay-Z has been invested in the brand LVMH since 2006, with the brand name of the Ace of Spades on a metallic silver bottle in the music video for "Show Me What You Got." Jay-Z also bought out Sovereign Brands for the company in 2014.
This particular deal is the cause of a connection between Jay-Z and Alexandre Arnault, who is the son of LVMH's founder, Bernard Arnault.