Music and merch go hand-in-hand – a fact that record labels know all too well.

The latest example of how inextricably the two are linked comes from Sony Music Entertainment (SME), which recently launched a new global media, branding, design and events company. Sony announced that it’s made a strategic investment in Ceremony of Roses, a leading boutique merchandising company founded by music and fashion entrepreneur Brad Scoffern.

Ceremony of Roses handles merch for artists that include Olivia Rodrigo.

“Brad and his team at Ceremony of Roses have proven to be an incredibly creative force in developing futuristic branding and merchandising services for artists,” said Rob Stringer, chairman of Sony Music Group.

The new company will maintain the Ceremony of Roses brand and work with artists across the music and entertainment industry. Ceremony of Roses is already home to artists including Adele, Olivia Rodrigo, A$AP Rocky, Baby Keem, Rex Orange County, Dominic Fike and Cordae. Scoffern and business partner Mary Healy, chief business officer at Ceremony of Roses, will lead SME’s new flagship global merchandising arm.

Sony Music’s existing merch businesses around the world will become a part of the new Ceremony of Roses team, according to the company. Its New York-based Thread Shop division, which represents artists including The Beatles, Camila Cabello, Jimi Hendrix, Led Zeppelin, Lil Nas X and P!nk, will remain as a brand under the Ceremony of Roses banner.

Scoffer said he was thrilled to join forces with Sony Music. “By joining Ceremony of Roses’ expertise in merchandising with SME’s global reach, roster and resources, we are set up for an exciting new chapter of growth,” he added.

The new partnership builds on Sony’s successful in-house merchandising business, expanding the scope and capabilities of its operations. The new company will focus on a broad range of artist merch and manufacturing efforts, including the management and development of artist-backed brands. Ceremony of Roses will also continue to support leading festival partners Golden Voice and Live Nation.

Ceremony of Roses was founded in 2016 by Scoffern as a creative service agency built to solve the evolving commercial challenges of the world’s largest artists and live-event producers.

Sony’s latest announcement follows an ongoing trend of record labels snapping up merch businesses. Last May, Stringer said Sony had spent $1.4 billion on music acquisitions over the previous six months and had “bought merchandising companies in every market in the world,” according to Music Business Worldwide.

Tech and social media companies have also been working to corner the music merch market, adding merch to music apps and virtual “merch shelves” to social sites.