July 18, 2005
DTC Will Increase Sales to Diamdel
The Diamond Trading Co. announced on July 14 its intention to increase sales to Diamdel to a record amount of up to $550 million in 2005. Diamdel, a De Beers Group unit, sells rough diamonds to non-sightholder companies located in cutting centers. Diamdel provides more than 500 clients with rough diamond assortments tailored to their needs and manufacturing capabilities.
The announcement followed a meeting with the World Federation of Diamond Bourses, with which DTC made its statement. The Diamdel move resulted from positive discussions at a meeting in London between a delegation from WFDB and senior representatives of DTC, including Gareth Penny, managing director; Stephen Lussier, marketing director; and Varda Shine, sales director, said both parties.
The WFDB and the DTC also reached agreement on the following points:
DTC said it recognized the contribution made by WFDB members in driving consumer demand for diamond jewelry and suggested there would be benefit to members aligning their marketing campaigns alongside the generic DTC-run campaigns. To this end, WFDB agreed to facilitate presentations from DTC to members of the various bourses about the forthcoming holiday marketing campaigns and consumer confidence updates.
DTC said it acknowledged the leading role played by WFDB in supporting the diamond industry and agreed to work together on appropriate industry initiatives.
DTC said it would participate in a joint committee with WFDB to develop and implement the "WFDB Mark," a new symbol that will serve as a trademark for approved members of WFDB-affiliated diamond exchanges to display to clients and suppliers, to confirm they abide by WFDB's better business principles.
In addition, WFDB announced its support for a new partnership between Diamdel and DJM Institute, which promotes and enhances entrepreneurial and business practice within the developing secondary industry, the group said.
"This has been a particularly positive meeting. The unity of purpose shown by all parties in the meeting lead to frank, wide ranging and forward looking discussions. We are pleased to be working with the WFDB to help address many of their concerns. We believe that the actions agreed today will be of benefit to the entire diamond industry," said Shine.
"The WFDB represents 15,000 members from all over the world at all levels of the diamond industry, and we have aims in common with the DTC in driving the success of this industry for the benefit of all. Furthermore, we recognize that DTC, through its marketing and consumer confidence activities, provides real value to this industry, unmatched by other participants," said Shmuel Schnitzer, president of WFDB.