Sean Carter, better known as rapper Jay-Z has disclosed details of his new partnership with Louis Vuitton Moët Hennessy (LVMH)
Moet Hennessey recently announced it has acquired a 50% stake in luxury champagne brand Armand de Brignac, also known as the Ace of Spades.
The ‘Ace of Spade” brand was previously owned by hip hop mogul and businessman Jay Z who bought it in 2014. He is to retain a 50% ownership stake alongside Moet.
Jay Z and the CEO of LVMH wines Philippe Schaus were invited on “Squawk Box” by CNBC news to discuss the deal
On why he chose to deal with Moet, Jay Z stated that his thinking, integrity, and passion for luxury products align with that of Moet Hennessey. He also stated that he has a lot of respect for the company.
He said, “You know they have just aligned in our thinking and thoughts and the way they care about products. You know when we build the products, whether it be Roc Nation, to monogram, to whatever we are building. We are building luxury products and Moet Hennessey goes about it the same way.
“We are aligned in our thoughts, integrity, and passion for the things we build”
Louis Vuitton Moet Hennessey was represented by its CEO Philippe Schaus who was also live to discuss the deal
On why the company chose to work with Jay Z, he stated that his Luxury Champagne brand is in a very attractive category. He stated that the company has been following up with the Ace of spades brand and was impressed with how they were able to attract new customers to the market.
“The brand is in the field of prestige which is a very attractive category in which we have several brands, but of course what Jay z did with his brand created a new market of its own at a very high level in the prestige category. It touched new consumers, bringing new consumers to the world of champagne with a very disruptive way of marketing,” Schaus said.
On what LVMH would be bringing to the Armand de Brignac brand, Schaus said the company will be bringing the sheer power of their international distribution network.
“What we felt we could bring to the brand which was already very successful is the sheer power of our international distribution network which can range from Asia, Europe, Latin America, and Africa,” he said.
Jay Z celebrated the deal as another win for the black community after he was quizzed on why he boycotted Cristal a previous favorite.
He explained that the idea of the “Ace of spades” Champagne brand is quite similar to what happened at the beginning of his rap career. Jay Z couldn’t get a record deal despite his talent so he started a record label with his friends Damon Dash and Kareem Burke
“It’s like the same way we built Roc Nation. It wasn’t our plan to build this media company. I wanted a record deal, and when we couldn’t get one we built our own. It’s similar to how those comments forced us to build our own thing. It’s a happy day,” Jay-Z said.
What you should know
- Jay-Z wholly bought the “Ace of Spades “ brand in 2014 from Sovereign Brands, a New York-based wine and Liquor company.
- He promoted it mostly with his brand. It sold over 500,000 bottles in 2019
- LVMH was formed as a conglomerate in 1987 when Louis Vuitton merged with Moet Hennessy in a $4 billion deal. They have gone on to become the world’s leading luxury goods vendor.
