De Beers announced a strategic overhaul, ceasing the production of synthetic diamonds for its Lightbox consumer brand to concentrate on manufacturing and selling natural polished diamonds.
This pivot aligns with the company’s new “Origins” strategy, emphasizing the value of natural diamonds and technology over synthetic jewelry.
Transition to Technology Hub
At the JCK Las Vegas breakfast event, De Beers CEO Al Cook explained that the company will streamline its Element Six business, merging its three chemical vapor deposition (CVD) plants into a single $94 million facility in Portland, Oregon.
This plant will become a technology hub focused on producing diamonds for industrial applications, positioning Element Six as a leader in synthetic-diamond technology solutions.
Despite the end of synthetic diamond production, Lightbox will continue as a consumer brand, maintaining its carbon-neutral and “Made in America” identity. The brand has enough inventory to sustain sales in the foreseeable future.
Focus on Natural Diamonds and Traceability
De Beers is refocusing on natural diamonds, with plans to reinvigorate category marketing and establish partnerships with retailers.
This includes the recent collaboration with Signet Jewelers, which involves training sales associates to promote the natural-diamond narrative.
Additionally, De Beers will introduce Diamond Proof, an in-store tool for detecting lab-grown diamonds.
As part of its strategic plans, De Beers will use contractors to manufacture some of its natural rough diamonds and sell the polished products.
This move leverages the traceability of its goods through the Tracr provenance platform, which will support the sale of premium polished diamonds under the traceable Code of Origin brand.
In light of its impending separation from Anglo American, De Beers is enhancing its strategic flexibility. The company will pause all operations in Canada, except for the Gahcho Kué mine, and focus on high-return projects like the Venetia underground mine in South Africa and the Jwaneng underground mine in Botswana. Exploration efforts will be concentrated in Angola.
To achieve $100 million in annual cost savings, De Beers will dispose of non-diamond assets and non-strategic equity holdings, deferring non-core projects.
A new set of supply contracts with sightholders will be negotiated in 2025. Additionally, the company will shift from sight-by-sight sales reporting to more detailed quarterly reporting starting in the second half of 2024.
De Beers will refocus its Forevermark brand on the Indian market and scale up its higher-end consumer brand, De Beers Jewellers.
Plans include launching a flagship store in Paris on Rue de la Paix and infusing the brand with more emotional appeal.
These strategic changes underscore De Beers’ commitment to adapting to market demands and enhancing its focus on natural diamonds and technology-driven solutions.
