LVMH acquires half of Armand de Brignac, Jay-Z’s champagne line known as the Ace of Spades

When Jay-Z got on a video call last week with Philippe Schaus, general manager of LVMH Moët Hennessy Louis Vuitton’s beverages business, the Zoom backgrounds told the story

Jay-Z spoke of a partially covered patio of his Los Angeles home wearing a casual sweater that was outfitted by the outdoor living room and the greenery around him.Mr Schaus was in his Paris office wearing a suit, behind the shelves with ornate drinks bottles stood

The subject: The news that LVMH would take over half of Armand de Brignac, Jay-Z’s bubbly brand (most people call it the ace of spades, after the bottle is branded)

The deal gives Jay-Z the organizational support and sales force of a global beverage machine like Mr. Schaus called it, while LVMH has the cool clout and lifestyle marketing know-how of a pacemaker of black culture at a time when the racism of the luxury industry is under scrutiny

Neither side would disclose the financial terms of the deal.But if Jay-Z’s writing can be considered adequate journalistic sourcing (it is highly likely that it shouldn’t), half of it was acquired by Armand de Brignac in 2018 valued at $ 250 million “I’m 50 percent from D’Ussé and it’s debt free, 100 percent from ace of spades, worth half a B,” tapped Jay-Z on “What’s Free,” the Meek Mill- Range (D’Ussé is the brand of cognac that Jay-Z owns with Bacardi)

Mr Schaus, who manages a champagne portfolio for Moët Hennessy that includes Dom Pérignon and Krug, raved right back. “After you understand the world of tomorrow, you think you’ve created a new champagne consumer,” he said, smiling Jay-Z via the computer to

It’s not the most obvious time to invest in champagne amid a health pandemic that has minimized the partying at the bottle-service dance club in a world with little to party, but then LVMH isn’t just buying a new brand of drinks: it is buying cultural know-how and enters markets traditionally not served by some of its brands

“We have to catch up somehow,” said Mr Show on Zoom’s call, “This relationship will give us a better understanding of tomorrow’s market”

LVMH first attempted access to “Tomorrow’s Market” in 2019 when it teamed up with Rihanna to create the high fashion line Fenty – and that happened also when it first met Jay-Z (Rihanna is represented by the senior management of Roc Nation, Jay-Z’s entertainment and sports company) Although the Rihanna line ceased operations less than two weeks ago, the champagne partnership signals a strengthening of bigger ties with the larger Jay-Z- Universe

The ace of spades deal was originally discussed in the summer of 2019 when Jay-Z hosted lunch at his home for Bernard Arnault, founder and chairman of LVMH, and Alexandre Arnault

The younger Mr. Arnault is the third of Bernard Arnault’s five children.At 28, he is an increasingly visible force at LVMH. In 2017, at the age of just 24, he became managing director of Rimowa, LVMH’s German luggage brand was the family member who accompanied his father when President Trump severed the ribbon on a new Louis Vuitton factory in Texas; and was recently named executive vice president of product and communications at Tiffany, which acquired LVMH for a $ 15 8 billion deal last year

He and Jay-Z are good friends who talk on the phone once a month or more. “I’ll send him a photo of something that’s wrong with me or he’ll send me a photo,” said Jay-Z. “It’s awesome natural, super chilled out I consider him a person of high integrity Always keeps his word, very punctual These are some of the qualities I have ”

The investment by LVMH, which has an all-white executive team, gives Jay-Z a heightened presence in an old European elite industry

“The very idea of ​​this partnership is a signal for a more diverse perspective,” said Jay-Z of LVMH

Jay-Z’s cultural and business association with Champagne has been long-standing. He had been a fan of Cristal and helped make it an emerging brand among hip-hop fans. But then, in 2006, one took off Executive at Cristal’s parent company to The Economist on the patronage of the rap world: “We can’t forbid people to buy them I’m sure Dom Pérignon or Krug would be happy with their deal,” he said

Jay-Z called for a boycott of Cristal and in the same year bought Armand de Brignac with a partner. He renamed the product Ace of Spades, redesigned the bottles and marketed it as a key element of the Jay-Z lifestyle with a reveal at the Video “Show Me What You Got” He kept the brand names alive in “We Made It Freestyle” from 2014, the year he bought the rest of the line

Though Champagne suffered as a company during the pandemic, Jay-Z said the market has recovered from its initial sharp drop in revenue and shipments in 2020 and settled for a 20 percent deficit

Both businessmen are hoping that the “super luxury” sector will be the first to recover, said Mr. Schaus. With a bottle of ace of spades, you can get between 300 and 64Save $ 999 on a 30-liter Midas bottle

Wealthy people are least affected in the current climate, Mr. Schaus said: “I will enjoy your pride again and show what you are and what you have achieved”

Jay-Z

World News – USA – Jay-Z and LVMH, two of the biggest brands in the world, go into business

Source: https://www.nytimes.com/2021/02/22/style/jay-z-lvmh-ace-of-spades-champagne.html