And the winner is…
JAY-Z has sold a 50 percent stake in his luxury champagne brand Armand de Brignac to LVMH Moët Hennessy Louis Vuitton, it was announced on Monday (Feb. 22). While financial terms of the transaction were not disclosed, the partnership allows LVMH to appeal to a younger, more diverse clientele while giving JAY-Z an increased presence in an old, elite, European industry.
“Just the idea of this partnership is a signal to a more diverse way of looking at things,” JAY-Z told The New York Times.
Half of Armand de Brignac was valued in 2018 at $250 million, according to JAY-Z. “I’m 50 percent of D’Ussé and it’s debt-free, 100 percent of Ace of Spades, worth half a B,” he rapped on Meek Mill’s “What’s Free.”
The champagne brand, which sells its gold bottles for $300 apiece, has appeared in JAY-Z’s music videos including 2006’s “Show Me What You Got” and 2007’s “Roc Boys (And the Winner Is).”
The Ace of Spades deal was initially discussed in the summer of 2019, when JAY-Z hosted a lunch at his house for Bernard Arnault, LVMH founder and chairman.
“We were always looking to grow this brand,” said JAY-Z, “and this happened very naturally.”
In 2014, JAY-Z purchased the high-end brand from New York-based wine and spirits company Sovereign Brands for an undisclosed amount. The champagne is made at a family-run vineyard in Chigny-les-Roses, France, by the Cattier family.
Moët Hennessy is the world’s biggest producer of champagne with a portfolio that includes Dom Pérignon, Veuve Clicquot, and Krug.
JAY-Z also helped launch D’Ussé cognac in 2012, which he owns with Bacardi.