Thursday, November 6, 2014

He's a Business, Mann! First Jay Z Made Ace of Spades Popular- Now He Owns It

Jay Z is a trend setter. He's used to introducing products to the masses and them becoming "the it thing." From whats hot to wear, to whats hot to collect, and even whats hot to drink- Jay is one of a handful of celebs who hugely impact the culture. We used to hear him rap about Cristal in every rhyme until his boycott of the brand back in 2006. He soon switched over to "Ace of Spades" and has been rocking with it ever since.

As soon as Jay Z switched so did hip hop culture. Now, Ace of Spades champagne is the one you see in all celeb club pics. So, knowing the business man Jay Z is, he wouldn't dare make it the most popular brand off of his name and not get a cut. The guy is hilarious to me.

Yesterday we got word from a representative of the parent company of Armand de Brignac or Ace of Spades, Champagne Cattier that Jay Z now owns a chunk of the brand. Details on exactly what he paid for it or how much of it he owns aren't clear yet, but the rep did say he made a deal they couldn't refuse. Either way, Jay Z wins here.

I did a little research and here is how the profits look per bottle according to the numbers:

*The wholesale price per Armand de Brignac (Ace) bottle is $225.

*Ace of Spades annual revenue is $13.5 million x 2.1 times sales makes Armand de Brignac worth $28.3 million.

* In a 2011 book, written by Zack O'Malley Greenburg, he suggested that the production cost of Ace is $13 a bottle... LOL

* So we basically are looking at 94% profit margin.

Those numbers are so funny to me because people are spending an arm and a leg in the club, for a name. A name that Jay Z brought to the table. Which makes it only right that he invests in it. Moments like these are why I'm such a huge fan of this guy. He's a business, man.

Congrats Jay.

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