Rap attention just fine with some companies

updated 12:05 p.m. ET July 3, 2006

NEW YORK - A few weeks ago, Jay-Z announced he was boycotting Cristal at his clubs after the champagne company's president indicated that he wasn't thrilled about the brand's association with hip-hop culture — comments the rapper called "racist."

But what about the many other high-end brands whose names constantly appear in rap lyrics? Do they embrace the free publicity or cringe at it? It depends on which company you ask.

Mercedes-Benz — the most-mentioned brand in last year's top songs — says the car's popularity in hip-hop circles certainly didn't hurt sales growth over the last dozen years.

Cadillac, which lost some luster in the 1980s and '90s, credits its turnaround, in part, to the popularity of the Escalade among rappers and other celebrities. Moet Hennessy USA said the wine and liquor company was "thrilled" about its affiliation with hip-hop.

Bentley Motors and Louis Vuitton — also among the most name-checked brands in music — were more reticent on the subject.

While some companies may shy away from being associated with a culture often marked by misogyny and violence, it is undeniable that hip-hop wields immeasurable power and influence in business.

Aspirational in some respects and now synonymous with youth culture in many corners of the world, hip-hop has long been credited with — or criticized for — having an impact on everything from clothing to cars.

Rappers giveth, and taketh away
But periodically, hip-hop's chief arbiters — like Jay-Z — turn on brands because of slights, real or perceived, to the culture.

Pepsi agreed in 2003 to give $3 million to charity after Def Jam co-founder Russell Simmons threatened a boycott because the soda company dropped an endorsement deal with rapper Ludacris following complaints from conservative commentator Bill O'Reilly.

Designer Tommy Hilfiger was dogged for years by rumors that he didn't want minorities buying his clothes. His company, which denied the entire episode ever happened, never quite regained the same popularity in hip-hop.

Lucian James, an executive with a branding agency that tracks mentions of products in Billboard's Top 20, warned that in a fast-changing marketplace luxury brands in particular must capture relatively "new" customers while maintaining "traditional or old" customers.

James said Cristal put itself at serious risk of losing the new clientele because of the comments made by Frederic Rouzaud, the president and chief executive of Champagne Louis Roederer — a 230-year-old French company that makes the bubbly.

In a recent issue of The Economist magazine, Rouzaud said the company viewed the affection for its champagne from rappers and their fans with "curiosity and serenity."

Asked by the magazine if the association between Cristal and the "bling lifestyle" could be detrimental, Rouzaud replied:

"That's a good question, but what can we do? We can't forbid people from buying it. I'm sure Dom Perignon or Krug would be delighted to have their business."

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