Jay-Z’s game-changing sale of Ace of Spade to LVMH
23 Feb 2021 LIFESTYLE
Luxury French conglomerate Louis Vuitton Moët Hennessy (LVMH) and its wine and spirits subsidiary Moët Hennessy have acquired a 50 per cent stake in Jay-Z’s luxury champagne brand, Armand de Brignac, also known as Ace of Spades.
Image: PRNewsfoto/Moët Hennessy
Though the financial terms of the arrangement have not been disclosed, Jay-Z revealed the news of the sale last week in a Zoom video call with LVMH Moet Hennessy CEO Philippe Schaus, according to the New York Times. Jay-Z, real name Shawn Carter, bought an initial 50 per cent stake in Armand de Brignac in 2006 and then purchased the majority of the brand in 2014.
Everyone is popping bottles
Though champagne has become a luxury item enjoyed on special occasions by those who can afford it, it remains a popular celebratory drink, especially in the United States. In 2020, the coronavirus pandemic and subsequent lockdowns harmed the liquor industry, fewer club revelers were are allowed to gather and consume alcohol due to social distancing efforts. However, over the years there’s been a positive sign of champagne having significant growth.
According to Forbes Magazine, in 2019, champagne boasted its seventh consecutive year of record sales in the US. More than 297 million bottles of champagne were shipped worldwide, with more than 25 million bottles destined for The United States which is France’s largest client when it comes to champagne.
Jay Z’s growing business empire
Jay-Z’s billion-dollar empire has recently gotten even bigger as the rapper turned mogul recently entered the cannabis business. As a businessman, he has an estimated net worth of $1 billion and also an investor in D’Usse cognac, streaming service Tidal, and entertainment heavyweight Roc Nation.
According to Jay-Z, the recent sale of half his stake of the champagne brand is said to “give Armand de Brignac the commercial power it needs to grow and flourish even further.”