Jay-Z To Launch Perfumes For Rihanna and Kanye West

Article written by: SoJones Asmara
Posted on: April 23, 2009

Shawn Carter, better known as Jay-Z, inked a new deal with Parlux Fragrance to release two new perfumes under the names of two hip hop and pop superstars: Kanye West and Rihanna. AllHipHop.com reported that Jay-Z and an unnamed female singer are also close to closing the deal with Parlux. Parlux’s rep dismissed the speculation of Beyonce being involved, without offering more details on the undisclosed artist’s name.

The venture with Jay-Z is not the first time for Parlux to team up with a celebrity. Prior to the collaboration with Jay-Z, Parlux has made perfumes and accessories for socialite Paris Hilton, Jessica Simpson, Nicole Miller, Natori, Queen Latifah, Andy Roddick, also well known fashion brands such as Guess?, XOXO, Ocean Pacific and many more.

The form of the deal is rather unusual, placing Jay-Z as the partner of Parlux Fragrances Inc. through Iconic Fragrances LLC, where Jay-Z is a major principal. In March 2007, Iconix Brand Group purchased Jay-Z’s Rocawear clothing company for $204 million in cash, plus an additional $35 million of Iconix stock. As for Kanye West and Rihanna -who already signed on the deal-, both stars are licensees, who are instantly eligible for royalties and profit sharing in the fragrance brands. Parlux is also fishing for opportunities in partnering up with other stars through this explosive collaboration, as Neil Katz, chairman and chief executive officer of Parlux said:

“We are extremely excited to begin work on our projects with Rihanna and Kanye West. Each is an extremely highly regarded celebrity at the top of his or her profession, who is undoubtedly going to make an indelible impression in the fragrance industry, just as each has done in the entertainment world. Their stars continue to rise rapidly in the entertainment arena, which will represent a terrific springboard for us in launching their fragrance brands. This agreement also enhances our attractiveness to other premier talents interested in associating with an established manufacturer and distributor of fragrance products.”

Jay-Z commented on this new deal, “We are excited for the opportunity to partner with Parlux and their management team in the launch of these dynamic new brands. This venture will take what is already a successful franchisa at Parlux to a new level.”

Although the economy is at its most unstable, Parlux kept an optimistic view on the deal. Katz said he is expecting a profitable fourth quarter, assuming no further major deterioration in the global economy. Furthermore, Katz acknowledged the economic impact on Parlux’s stock via his announcement.

“We are conscious of the general economic conditions that have unfairly affected the value of our shares for our shareholders. However, we believe this proactive investment by Jay-Z, Rihanna and Kanye West is an indication to the marketplace of the underlying value of Parlux.”

Rihanna and Kanye West are the first couple of celebrities to launch the perfumes in summer 2010, while Jay-Z and the undisclosed female singer will follow suit in the following year.