Music mogul, Sean ‘JayZ’ Carter has acquired luxury champagne brand Armand de Brignac popularly called ‘Ace of Spades’ from the Berish family.
The NY Post reports.
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.”
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 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.