When Jay-Z clicked in a video call with Philip Scouse last week, Zoom Background, the chief executive of LVMH Moët Hennessy Louis Vuitton’s drinks business, told the story.
Jay-Z spoke to the partially covered terrace of his Los Angeles home, wearing a casual sweater, accessed by the outdoor living room and the greenery surrounding it. Mr. Scout was in his office in Paris, wearing a suit, with access to the shelves of elaborate drink bottles behind him.
Subject: News that LVMH will acquire half of Armand de Brignac, Jay-Z’s bubbly brand. (Most people call it Ace of Spades after branding its bottle.)
The deal gives Jay-Z the organizational support and delivery power of a global beverage “machine”, as stated by Mr. Scouse, while LVMH finds calm and lifestyle marketing know-how A fast-paced black cultural leader At a time when the racism of the luxury sector is under special scrutiny.
Neither side will disclose the financial terms of the transaction. But if Jay-Z’s lyrics could be considered as a source of appropriate journalism (it’s very likely that they shouldn’t be), half of Armand de Brignac was valued at $ 250 million in 2018. “I’m 50 percent of D’use and it’s debt-free, 100 percent of Ace of Spades, worth half-B,” Jay-Z Pulled On “What’s Free,” the Meek Mill track. (D’use is the Cognac brand with Jay-Z Bacardi.)
However, they were more than happy to talk about their new relationship.
“We always wanted to develop this brand,” Jay-Z said, “and it happened very naturally.”
Mr Scouse, who manages a champagne portfolio for Moët Hennessy, including Dom Perignon and Krug, pushes the right hand back. “In your understanding of tomorrow’s world, we believe you’ve created a new consumer for champagne,” he said, smiling at Jay-Z through the computer.
This is not the clearest time to invest in champagne amidst a health epidemic that has kept bottle-service dance-club partying at least one of the worlds to celebrate. But then, LVMH is not just buying a new beverage brand: it is buying cultural information and entering markets Not traditionally served By some Of its brands.
On the zoom call, Mr. Scouse said, “We have to catch up somehow.” “So this relationship will inject us with some better understanding of tomorrow’s market.”
LVMH first attempted to reach “tomorrow’s market” in 2019, when it teamed up with Rihanna To create Fenty High fashion line – Whatever it was, as it happened, when I first met Jay-Z. ()Rihanna RC Nation, represented by Jay-Z’s entertainment and sports company’s management arm.) However Rihanna’s line operations were suspended Less than two weeks later, the Champagne partnership indicates strengthening the larger ties to the larger Jay-Z universe.
The Ace of Spades deal was initially discussed in the summer of 2019, when Jay-Z hosted a lunch at his home for Bernard Arnault, founder and president of LVMH and Alexander Arnault.
The third of five children of Bernard Arnault, Mr. He is a fast-looking force at LVMH at the age of 28. He became the chief executive of Rimova, a German goods brand owned by LVMH in 2017, at just 24; Was a family member with his father When President Trump cut the ribbon on a new Louis Vuitton factory in Texas; And was recently named executive vice president of product and communications at Tiffany, acquired by LVMH $ 15.8 billion deal last year.
He and Jay-Z are good friends who talk on the phone one or more times a month. “I’ll send him a photo of something going with me or he’ll send me a photo,” Jay-Z said. “It is super natural, super chill. I see him as a person of high integrity. Always keeps his point, punctuality a lot. These are some of the qualities that I have. “
Investment from LVMH, which is all-white leadership team, Gives Jay-Z an increased presence in an older, elite, European industry.
“The idea of this partnership is merely a sign of a more diverse way of looking at things,” JV-L said of LVMH.
“We have a long way to go,” Mr. Scouse said.
Jay-Z has a long cultural and business relationship with Champagne. He was a fan of Kristal, helping to elevate an aspirational brand among hip-hop fans. But then, in 2006, an executive with Kristal’s parent company Commented Concerning the preservation of the rape world, the economist: “We cannot refuse people to buy it. I am sure Dom Pérignon or Krug would be happy for their business, ”he said.
Jay-Z calls for a boycott Christal and the same year, he bought Armand de Brignac with a partner. He rebranded the productions Ace of Spades, redesigned the bottles, and marketed it as a key element of the Jay-Z lifestyle, with a reveal in the “Show Me What You Got” video. He kept the brand mentions alive in 2014 “We made it freestyle,” The year He bought the rest Of line.
Both businessmen are hopeful that the superhouse area may recover first, Mr said. A bottle of Ace of Spaces can set you back between $ 300 to $ 64,999, For a 30-liter Midas Bottle.
The current climate has affected fewer people, Mr. Scouse said, and is “enjoying their pride in what they are doing and what they have achieved.”