French luxury goods company LVMH Moet Hennessy Louis Vuitton SA - which owns Champagne brands Dom Pérignon and Moët & Chandon - has bought a 50% stake in rapper Jay-Z's label Armand de Brignac for an undisclosed amount, Yahoo Finance reported Tuesday.
The hip-hop performer's wine is popular in North America, Europe and Asia, with more than 500,000 bottles sold in 2019. His line is popularly known as Ace of Spades.
The musician acquired a 50% stake in Armand de Brignac in 2006, according to a news release.
In 2011, the beverage was the "Champagne toast of choice" at Kim Kardashian's wedding to basketball player Kris Humphries.
He bought the remaining half in 2014.
LVMH's track record in distribution and experience developing international brands "will give Armand de Brignac the commercial power it needs to grow and flourish," CNN quoted the rapper-business owner as saying in a statement.
Moët Hennessy chief executive Philippe Schaus said "we can increase the volumes given Moët Hennessy's 1,600 hectares of vineyards to supply grapes in the Champagne region," according to Yahoo Finance.
It has been a poor past 12 months for Champagne as sales fell as a result of canceled celebrations and restrictions on indoor dining during the virus crisis.
Shipments were down 18% last year compared with 2019, according to figures from Le Comité Interprofessionnel du vin de Champagne - a trade organization. At LVMH, volumes dropped almost 20% in 2020, the company said in January.
Jay-Z, born Shawn Carter, said a partnership was sparked when hosted Alexandre Arnault - and subsequently his father, LVMH chairperson Bernard Arnault - to his Los Angeles home. Hennessy president Philippe Schaus attended, too.
Jay-Z has promoted another Champagne, Cristal - but he publicly shunned the brand after a top executive questioned its popularity in the hip-hop industry.