Jay-Z Sells Half His Champagne Brand “Ace Of Spades” To LVMH.
Touchaheart Nigeria reports that Singer, Jay-Z has sold 50% of his champagne brand, “Ace Of Spades” to LVMH.
On Monday (Feb. 22), Moët Hennessy, the luxury conglomerate’s wine and spirits division, announced its purchase of a 50 percent stake in JAY-Z’s champagne brand Armand de Brignac, commonly known as Ace of Spades.
The company said the purchase, for an undisclosed sum and made through its Moet Hennessy drinks division, also involved a distribution deal and would kick off a partnership reflecting a “shared vision” between the singer and the company.
Appearing on CNBC’s “Squawk Box” on Monday to announce the deal, Hov said he and LVMH began discussing the potential partnership in 2019.
“It just started out in a place of respect and built from there pretty quickly,” he said on the show.
Jay-Z’s champagne brand, known informally as Ace of Spades, had been “a fantastic success”, Moet Hennessy CEO Philippe Schaus said in a joint statement with Jay-Z.
“Armand de Brignac breaks barriers and reflects contemporary luxury while preserving the traditions of the Champagne terroirs,” he said.
Jay-Z, quoted in the statement, he said;
“it is a partnership that has felt familiar the entire time”, adding he was confident that “the sheer power of the Moet 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”.
Financial Times reported that Jay-Z said Moët Hennessy was the “natural partner” to take Armand de Brignac to “the next level of taste and distribution”.
According to Yahoo! Finance, JAY also said;
“We want the brand to outlast all of us… We don’t cut corners or lean on fame to sell the product,” he added on a Zoom call. “We’ve built it through passion and integrity.”
According to the New York Times, the deal was originally discussed in 2019 and seems to be strengthened, at least in part, by the friendship between the rapper superstar and Alexandre Arnault, the son of LVMH founder and chairman Bernard Arnault.
“I’ll send him a photo of something going on with me or he’ll send me a photo,” Jay-Z told the New York Times. “It’s super natural, super chill. I view him as a person of high integrity. Always keeps his word, very punctual. These are some of the qualities I have myself.”
JAY bought a 50 percent stake in Armand de Brignac in 2006 and famously debuted the brand in his “Show Me What You Got” music video. Prior to the partnership, the rap mogul endorsed Cristal in his music. However, an executive of Louis Roederer’s disparaging comments about hip hop led to Hov boycotting the brand. In 2014, he bought the remaining half of Armand de Brignac.
With the new partnership, Philippe Schaus told CNBC’s Becky Quick that Armand de Brignac will bring new consumers to the champagne category.
“What we could bring to the brand, which is already very successful, is the sheer power of our international distribution network,” he added.
CNBC reports that Armand de Brignac sold over 500,000 bottles in 2019. Under the terms of the new deal, LVMH will take over the distribution of the champagne.
The outlet adds that the financial details of the sale have not been made public.