Jay-Z & LVHM To Go Into Business Together Selling Ace of Spades Champagne
Last week, Jay-Z met virtually with Philippe Schaus, chief executive of LBHM Moët Hennessy Louis Vuitton. The pair discussed a mutually beneficial business opportunity.
LVMH will acquire half of Jay-Z’s champagne brand, Armand de Brignac (or Ace of Spades). The deal gives the rapper organizational support and the power of distribution over global drinks “machine.” While LVMH gains having a black cultural leader at the company at a time where luxury goods lack the inclusion of people of color at the top of the industry.
“We were always looking to grow this brand,” Jay-Z told The New York Times. “And this happened very naturally.”
“In your understanding of the world of tomorrow, we believe you created a new consumer for Champagne,” said Schaus.
While it was not the best time to invest in champagne due to the global pandemic halting bottle service parties, LVHM believes that they were buying into a cultural know-how into a market not traditionally seen by some of their other brands.
“We have to catch up somehow,” Schaus revealed. “So this relationship will help us with some better understanding of the market of tomorrow.”
LVMH’s first attempt into “the market of tomorrow” was its collaboration with Rihanna to create her Fenty fashion line. This was how LVHM first met the “Empire State of Mind” singer as Rihanna is represented by Roc Nation, Jay-Z’s sports and entertainment management company.
The champagne deal was first discussed in summer 2019 when Jay-Z hosted a lunch for Bernard Arnault, the founder and chairman of LVMH, and Alexandre Arnault.
Jay-Z shared that he was good friends with the younger Arnault. “I’ll send him a photo of something going on with me or he’ll send me a photo,” Jay-Z revealed. “It’s super natural, very chill. I view him as a person of high integrity. Always keeps his word, very punctual. These are some of the qualities I have myself.”