Reckless
Legend
- Joined
- Jan 15, 2021
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Armand de Brignac ( Ace of Spades) is a champagne (a French carbonated wine). Last week, JayZ sold 50% of his holdings in the company that sells it to LVMH in a deal reported pay him between $300-$500m. Terms were not disclosed but going by his lyrics in his track "whats free" in 2018, I'm 50% of D'usse and it's debt free, 100% of Ace of Spades, worth half a B, puts it close.
But JayZ's involvement in the company goes back to 2006. Rap artists placed references to Cristal, another champagne, in their songs but their manufacturer ignored their endorsements. In fact Frederic Rouzaud, the manager of the company that makes Cristal champagne, made an unsavory comment about his brand's clientele.
“What can we do?” Rouzaud replied when a reporter from the Economist asked his thoughts about the popularity of Cristal among rappers. "We can’t forbid people from buying it. I'm sure Dom Pérignon or Krug would be delighted to have their business."(Don Perignon and Krug are Champagne brands).
And so JayZ whent shopping. To France ( a drink has to be from the Champagnee region of France to bear that name, at least in some countries). He found Cattier trying to make a foothold in North America with a $60 Antique Gold Champagne. The production price was $13 per bottle. He struck a deal with them. They aged the drink longer. Added the signature spade trademark to the gold bottle. Called it Armand de Brignac. And changed the price to $300 a bottle with JayZ's aggressive marketing in Rap videos and high end entertainment venues. Because the wholesale price is $225 a bottle, JayZ split a cut of the $212-per-bottle profit evenly with Cattier and Sovereign Brands ( original marketer of the drink in NY). He also negotiated a stake in Sovereign Brands.
Then in 2014, he bought out Sovereign Brands stake in the drink. Which he sold half for $500 million last week.
But JayZ's involvement in the company goes back to 2006. Rap artists placed references to Cristal, another champagne, in their songs but their manufacturer ignored their endorsements. In fact Frederic Rouzaud, the manager of the company that makes Cristal champagne, made an unsavory comment about his brand's clientele.
“What can we do?” Rouzaud replied when a reporter from the Economist asked his thoughts about the popularity of Cristal among rappers. "We can’t forbid people from buying it. I'm sure Dom Pérignon or Krug would be delighted to have their business."(Don Perignon and Krug are Champagne brands).
And so JayZ whent shopping. To France ( a drink has to be from the Champagnee region of France to bear that name, at least in some countries). He found Cattier trying to make a foothold in North America with a $60 Antique Gold Champagne. The production price was $13 per bottle. He struck a deal with them. They aged the drink longer. Added the signature spade trademark to the gold bottle. Called it Armand de Brignac. And changed the price to $300 a bottle with JayZ's aggressive marketing in Rap videos and high end entertainment venues. Because the wholesale price is $225 a bottle, JayZ split a cut of the $212-per-bottle profit evenly with Cattier and Sovereign Brands ( original marketer of the drink in NY). He also negotiated a stake in Sovereign Brands.
Then in 2014, he bought out Sovereign Brands stake in the drink. Which he sold half for $500 million last week.