Jay Z sells half his company to the world's biggest luxury goods company
Jay Z has sold half of his company, Armand de Brignac, to LVMH, the world's biggest luxury goods company.
This man knows how to make money and he is always on the ball.
Jay-Z has just sold 50% of his champagne brand, Armand de Brignac (Ace of Spades), to LVMH. After he had bought the company in 2014 for $30-million.
In 2019, he managed to increase his annual sales from 60k to 500k bottles and now has sold his company to LVMH for over an estimated $250-million! Talk about money!
Ace of Spades is said to cost $13 to make, but sells for $225 at wholesale — a whole 94% profit margin.
LVMH said the purchase involved a distribution deal and would kick off a partnership reflecting a "shared vision" between the world known singer and the company.
Jay-Z's champagne brand, known informally as Ace of Spades, has been more than a fantastic success since it came out.
In a joint statement with Jay-Z, Moet Hennessy CEO Philippe Schaus said:
"Armand de Brignac breaks barriers and reflects contemporary luxury, while preserving the traditions of the Champagne terroirs,"
Jay-Z also added and said
It is a partnership that has felt familiar the entire time. 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
Congratulations to the man for making such a big move, not only to expand his brand, but also to keep it among the world's most luxurious brands. That's wealth and brains.