He’s a business, man, not a businessman. And his business skills were on full display yesterday as Jay-Z sold his champagne brand Ace of Spades to luxury brand behemoth LVMH.
LVMwho? They’re a French multinational holding company of luxury brands, including Louis Vuitton, Moët and Hennessy. LVMH bought half of Ace of Spades from Jay-Z and the hold co plans to give it the boost of their “global beverage machine”.
What were the terms: We don’t know how much LVMH bought their share for, but we do have a pretty good idea of how the business was doing.
- In 2014, Jay-Z bought the brand for $30 million and increased sales from 60,000 bottles to 500,000 bottles in 2019.
The really crazy part? Ace of Spades makes insane margins. Each bottle costs $13 to make and sells for $225 wholesale.
Zoom out: LVMH is buying Ace of Spades to leverage its brand cachet and famous spokesperson to enter markets that it’s struggled in. Jay-Z said that the partnership signals that LVMH is taking a more diverse look at things.