In a story that was written prior to revelations that Armand de Brignac Champagne may not be what it’s claimed, Jamie Bryan takes a really fascinating look at hip hop and the alcohol industry , and inadvertently deepens the perception that ProHipHop has liquor on the brain.

A running thread in the article is the situation of Branson B., who is said to be widely name checked in rap lyrics, but is having trouble getting well-known rappers with whom he feels a connection to support his product.  In fact, recent moves by Diddy and Jay-Z have suggested that the folks he hoped might give support are going to be competitors.

It’s hard to find much about Branson B. online and that doesn’t help either, though he is making headway:
Honey lounge in New York has signed on to carry Branson B., and the exclusive Cain clubs are thinking about it. Megu has added it to the wine lists at its tony Japanese restaurants in Trump Towers and Tribeca (Tribeca’s list is a Wine Spectator award winner). Platinum-selling rapper the Game recently wrote Branson B. Champagne into the performance rider for his upcoming world tour.

But I was actually much more interested in the following information about David McCallen and Straight Up Brands:
Both trends–rappers’ entry into the wine-and-spirits business and the use of clubs to promote brands–are being built into the entire product-development strategy. For example, David McCallen, CEO of Straight Up Brands Inc., a publicly traded company, is launching a sparkling wine called Wave with rapper Foxy Brown, as well as other beverages with Ja Rule and DJ Clue. According to McCallen, because Foxy is signed to Def Jam, Jay-Z has agreed to host Wave’s launch this winter, "appear around the product with her," carry it in his 40/40 Clubs, and include a promotional insert in her new CD.

The quality of the wine isn’t the main point–it’s all about placement and cross-promotion. McCallen stresses that deals like Foxy’s aren’t endorsement deals. The artist "owns a piece of the brand" and shares in revenue as a creative partner (he puts the profits on wine products at around 35% to 40%, and up to 100% on spirits). "We give them signing bonuses, just like a record deal," he explains. "I want the artist to literally work [the name] into their songs, rap about it, have it in their videos. It’s all product placement."…

"This is a fit for [rap artists] from a product point of view," McCallen adds. "I mean, they’re shameless promoters… . So it’s not a disconnect for them to rap about a liquor deal, a liquor product that they own. It’s spot on."

Bringing the artist in as partner has long been a hallmark of hip hop business endeavors and McCallen’s take on the situation is also spot on.  For the most part, hip hop artists do excel at promoting products with which they feel strong ties, whether cultural or economic, and ultimately move beyond product placement to a full visible integration of a product into their daily lives and the lives of their fans.

Thanks to Lynne d Johnson for the tip.