Rapper Jay Z Buys “Ace Of Spades” Luxury Champagne Label

jay z ace of spades

Jay-Z has a few million reasons to toast.

The rap impresario has long been associated with Armand de Brignac — the Champagne known as “Ace of Spades,’’ due to its distinctive insignia — and now he owns it.

Or at least he owns an indeterminate chunk of the brand produced by Champagne Cattier, a French vintner since 1763, as details released on the deal on Wednesday were murky.


It was also an offer they wouldn’t divulge. Industry metrics, however, indicate the brand in its entirety is worth between $25 million and $30 million.Jay-Z specifically bought the interest in Armand de Brignac held by Sovereign Brands, a New York-based wine and spirits company owned by the Berish family, after submitting an offer a Sovereign spokeswoman said “we simply couldn’t refuse.”

Jay-Z bio author Zack O’Malley Greenburg puts the wholesale price per Armand de Brignac bottle at $225.

Greenburg also suggests “Ace of Spades’’ generates annual revenue of $13.5 million and using an industry multiple of 2.1 times sales would make Armand de Brignac worth $28.3 million.

In his 2011 book, Greenburg estimates a production cost of $13 per bottle, which translates into a 94 percent profit margin.

Even a three-way split at the time among Cattier and Sovereign as co-owners and Jay-Z as unofficial hawker, the author notes, would deliver more than $4 million a year to each participant.

Source: New York Post

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