Jay-Z continues to expand his business resume. After famously calling for a ban of Cristal in the mid-2000s and helping Ace Of Spades take off, the hip-hop mogul is now going into the cognac market.
According to The Life Files, Hov was on-hand for an ultra private event in New York on Thursday night (May 9), helping introduce D’usse (pronounced “dew-say”), A Bacardi-produced cognac expected to compete with Hennessy.
Details about Jay’s actual business involvement in brand’s launch were unknown at press time.
D’usse is slated to drop next month. The VSOP cognac will retail at around $44.99 per 750-ml bottle.
Jay previously name-dropped Armand de Brignac champagne (aka Ace of Spades) in the past. However, details about the business relationship have not been confirmed.
In a 2011 book, titled Empire State of Mind: How Jay-Z Went from Street Corner To Corner Office, Forbes staff writer Zack O’Malley Greenburg uncovered the business behind the endorsement, writing that Jay earns millions each year for his stamp of approval.
“All of them confirmed that Jay-Z receives millions of dollars per year for his association with Armand de Brignac. The connection wasn’t through the Cattier family, but through Sovereign Brands. The production cost per bottle of Armand de Brignac is about $13; the wholesale price is $225. The maximum output is 60,000 bottles per year. If Jay-Z splits the $212-per-bottle profit evenly with Cattier and Sovereign, a back-of-the-envelope calculation suggests his annual take would be a little over $4 million. One of my sources confirmed that number, and added that Jay-Z may have received equity in Sovereign Brands worth about $50 million,” writes Greenberg. (Via…)