News – USA – LVMH and Jay-Z Announce New 50% Partnership in Ace of Spades: Why Investing in Bubbles Makes sense

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Champagne ace: Jay Z sold a 50% stake in its bubbly Armand de Brignac brand to LVMH

The French conglomerate LVMH has announced that it has a 50% stake in the champagne house of the rapper mogul Jay-Z, Armand de Brignac The Champagne brand, popularly known as the “ace of spades” for the lively metal bottles known where the bubbles are located, showed strong momentum in pre-pandemic times, selling over 500 in 2019000 bottles

The partnership also gives Moët Hennessy a global distribution agreement.The French conglomerate has several marquee wines and spirits under its roof, including Dom Perignon, Veuve Clicquot, Krug and Château d’Yquem The deal comes on the trail of the latest news that LVMH Rihanna’s Fenty ready-to-wear collection has stopped

Jay-Z chose Armand de Brignac in 2014 following a boycott of Cristal champagne in 2014 after a senior executive of the brand made derogatory remarks on rap consumers Armand de Brignac makes prestige cuvées from the Cattier family now in the 13th Generation wine produces

According to the New York Times, the deal was originally discussed in 2019 and appears to be strengthened at least in part by the friendship between the rapper superstar and Alexandre Arnault, son of LVMH founder and chairman Bernard Arnault, “I’ll get him Send a photo of something that’s wrong with me or he’ll send me a photo, “Jay-Z told the New York Times.” It’s super natural, super chill I consider him a person of high integrity Always keeps his word , very punctual. These are some of the qualities that I myself have ”

Bottles of Armand de Brignac champagne with the brand’s ace of spades are in the [] cellar of the Cattier champagne family home on 6 November 2014 in Chigny-les-Roses, south of Reims, north-east France

While it may seem counterintuitive to focus on champagne during a pandemic, the partnership between the French company and the American businessman signals an optimism about the future of luxury consumption and consumer post-pandemic attitudes

Why does an investment in champagne make sense? Because sales of champagne grew steadily before the pandemic.In 2019, Champagne posted record sales in the USAS for the seventh consecutive year;; Over 297 million bottles of champagne have been exported worldwide, of which over 25 million were destined for the USFrance’s largest customer spent over $ 752 million on champagne imports in 2019, a 153% more than last year

The pandemic dampened sales for a spirit associated with partying The champagne industry, which started the year with strong momentum, saw a sharp drop in sales, reportedly as high as 70%, due to forced closings, restaurant closings and social distancing

But then you remember the pictures from last November 7th when the presidency was called for Joe Biden Besides footage of people dancing and screaming, there was one other thing that got on social media and in news reports of celebrations It was clearly visible: bottles burst with bubbles

In Washington, DC.Liquor store owners told Newsweek that they sold more bottles of champagne that Saturday than the previous two New Years combined. Atlanta “had a mad dash of champagne,” reported The Tennessean to order a bottle of bubbles The sense of joy that Atlanta devoured was palpable ”

The New York Post reported, “Champagne flowed” like water “into the Big Apple on Saturday as New Yorkers gushed away during the heady celebrations for Joe Biden’s victory over President Trump, sharing wine and liquor stores across town The Post told the Post they were drowning in sales – some reported a drought of cheap carbonated products. The Boston Globe repeated: “People were out in downtown Providence celebrating, cheering, playing music and dancing liquor stores selling champagne like New Years Eve”


With that in mind, a deal struck for champagne now suggests a rosy outlook for the post-pandemic celebration market

Jay-Z, Champagner, LVMH, Armand de Brignac, Moët & Chandon

News – USA – LVMH and Jay-Z announce new 50% partnership at Champagne Ass: Why investing in bubbles makes sense

Source: https://www.forbes.com/sites/elvaramirez/2021/02/22/lvmh-and-jay-z-announce-new-50-partnership-in-ace-of-spades-champagne-why-investing-in-bubbles-makes-sense/