The rap mogul Shawn “Jay Z” Carter has recently purchased equity in the Armand de Brignac Champagne line owned by Sovereign Brands, a wine and liquor company based in his native New York. Through his incredible influence and popularity in the hip hop culture, he has been able to heavily promote the brand in his music and public appearances. The marketing upside of having someone as famous as Jay-Z associated with your brand is exponential. Like we covered in Class 2: Marketing Meets Accounting, the firm, Sovereign Brands can instantly charge more for their luxury beverage due to Jay-Z’s involvement. It could be an inferior champagne to competitors, but the fact that it’s part owned by Mr. Carter and has an enormous price tag attracts the desired customer segment of extremely wealthy individuals. Truly an upper echelon priced drink, the nine bottle size collectors package ranging from 750-milliliter to the 30-liter “Midas” sold for $500,000 at MGM’s Hakkasan nightclub in Las Vegas. I believe that shrewd investors like Jay-Z and 50 Cent exemplify the entrepreneurial dream of burgeoning young business hopefuls like me. They came from impoverished environments and managed to stay driven and reach the top of their fields, all the while staying conscious of sustaining their wealth by diversifying through savvy investments.
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