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.
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