Jay-Z and Bacardi have reached an agreement for their partnership according to reports by Bloomberg Law.
“According to docs, Jay’s company, SC Liquor, exercised its right to a buyout about a year ago. Under their agreement, Bacardi now has to ‘negotiate in good faith’ to come up with a fair price for Jay’s stake in D’Ussé,” TMZ reports.
“Jay-Z was looking for a buyout valued at $1.5 billion due to concerns that Empire Investments Inc., Bacardi’s subsidiary, was not adequately preparing for increasing consumer interest in the brand. Bacardi allegedly countered Jay-Z’s billion-dollar request with $500 million.”
On Feb. 3, D’USSÉ Cognac announced that JAY-Z and Bacardi had renewed their partnership.
According to a press release, Bacardi has acquired a majority interest in the multi-billion-dollar brand, and the hip-hop billionaire will retain a significant ownership stake as part of the agreement.
Bloomberg Law reports Bacardi bought out most of Jay-Z’s 50 percent stake in D’Ussé. At the minimum, Bacardi has a 75.01 percent stake in the partnership.
The outlet also reports Jay-Z could have potentially walked away with an estimated $750 million.
“Growing D’USSÉ over the past decade from an idea to one of the fastest-selling spirits in history has been a blessing,” Jay-Z said in a statement, according to a press release. “The next phase of this journey will further cement D’USSÉ’s legacy as one of the world’s most respected brands. I am excited to renew this partnership with Bacardi.”
“We have deep respect for his creativity and business acumen and are proud of our accomplishments in establishing D’Usse as a leader in an exciting and competitive category,” Bacardi also shared in a statement to Bloomberg Law.
“In 2012, Jay Z and Bacardi partnered to launch D’USSÉ Cognac to set a new and clear standard for cognac around the world, collecting numerous distinctions including Double Gold at the 2021 San Francisco World Spirits Competition and Double Gold at the 2022 Proof Awards. D’USSÉ has become a culturally iconic brand standing for integrity, boldness, freedom, and the elevation of authenticity,” the statement also said.
WMV previously reported that the rapper turned billionaire businessman filed a lawsuit against spirit company Bacardi, over the brand’s lack of financial transparency regarding their decade long partnership with D’Usse.
TMZ, reports that the lawsuit was filed by the Jigga Man’s company SC Liquor, which demands Bacardi share all information relating to their deal so that the Roc-nation mogul can see exactly how much is being generated from the sales of D’Usse cognac, a brand in which Bacardi and Jay-Z has a 50/50 partnership.
Jay-Z has co-owned D’Usse since 2011, and famously drank it straight out of one of the Grammy awards he won for Watch The Thronein 2013. The suit had demanded that Jay be given access to the production warehouses, D’Usse barrels, bottles and all other info regarding Bacardi’s inventory-keeping process. SC Liquor writes it needs to “monitor the conduct of all business related to the brand in order to protect SC’s rights” as a partner.
With the new deal Jay Z’s empire continues to grow.
