Jay-Z Turns Over 50% of Ace of Spades to Luxury Powerhouse LVMH

0


Luxury beverage giant LVMH Moët Hennessy has acquired a 50% stake in Jay-Z’s champagne brand, Armand de Brignac.

Armand de Brignac — which is widely known as “Ace of Spades” due to its logo — was launched by French Champagne company, Cattier, in 2006, then purchased by a company led by Jay-Z in 2014. A press release touted the brand as a “worldwide success” that sold over 500,000 bottles in 2019.

The new deal with Moët Hennesy (which is itself one-half of the gigantic French luxury conglomerate LVMH) involves a 50-50 ownership split as well as a global distribution agreement. Moët Hennessy also looks after other well-known champagne brands including Dom Pérignon and Krug.

While neither Jay-Z’s team nor LVMH disclosed financial terms of the transaction, The New York Times pointed out that some clues may be found in the rapper’s own lyrics: According to a Jay-Z verse on Meek Mill’s 2018 “What’s Free,” Ace of Spades is worth “half a B,” which would value a 50% stake at $250 million.

“I’m proud to welcome the Arnault family into ours through this partnership that began with Alexandre Arnault and continued with his father [LVMH CEO] Bernard Arnault and Philippe Schaus, at my home in Los Angeles,” Jay-Z said in a statement. “It is a partnership that has felt familiar the entire time. We are confident that the sheer power of the Moët Hennessy global distribution framework, its unparalleled portfolio strength and its long-established track record of excellence in developing luxury brands will give Armand de Brignac the commercial power it needs to grow and flourish even further.”

“We are going into this partnership on equal terms together with Jay-Z and his family and with the same conviction that we are only at the beginning of a wonderful story,” said Schaus, president and CEO of Moët Hennessy. “Together, we will lay a strong path forward to firmly cement Armand de Brignac as a luxury icon for current and future generations of customers.”

The Armand de Brignac deal is the latest in a long line of non-musical ventures that Jay-Z has been focused on in recent months. Back in December, the rapper’s Roc Nation announced a partnership with Random House to launch a new publishing imprint, Roc Lit 101, that will publish its first titles later this year. And last October, Jay-Z launched his first marijuana line, Monogram, which was borne out of a partnership with the California-based cannabis company, Caliva.





Source link

Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More