EU Gives Green Light to Supplier of Choice

The Diamond Trading Company (DTC) - the sorting, sales and marketing arm of the De Beers Group of companies - is pleased that the European Commission today confirmed that it has adopted a favourable position on the DTC's Supplier of Choice strategy.  This step is the culmination of a detailed and constructive dialogue with the Commission and of the Commission's consultation with interested parties. 

Supplier of Choice is the DTC's strategy to drive consumer demand for diamond jewellery in the context of an increasingly competitive luxury goods sector.   Central to this strategy is the ability of the DTC to develop its relationship with its customers in a manner which will encourage long-term growth at the retail level. This will be promoted by a set of objective and pro-competitive criteria - which emphasise distribution efficiency and effective marketing - that determine how the DTC identifies its clients and supplies rough diamonds to them.  The DTC has introduced an extensive package of value added support services to assist its clients to create further distribution efficiencies and to work with downstream partners to grow consumer demand for diamond jewellery. 

The DTC has established a code, the Diamond Trading Company Diamond Best Practice Principles, to underpin Supplier of Choice.  The principles are designed to maintain and enhance consumer confidence in natural diamonds by ensuring that the DTC and its clients adopt, and encourage their trade partners in turn to adopt, the highest professional and ethical standards. Over the next few months, the DTC will put in place the necessary preparatory process, and will work closely with its stakeholders, to allow Supplier of Choice to become operational by mid-2003.

In response to the European Commission's favourable position on Supplier of Choice, chairman of the De Beers Group of companies, Nicky Oppenheimer said: "We are obviously very pleased with the Commission's positive pronouncement which means that we can now bring into effect the new arrangements under Supplier of Choice. We remain absolutely committed to working in partnership with our clients in building a dynamic, competitive and consumer-focused industry." 

Gary Ralfe, managing director, said: "Today's announcement confirms that we can go ahead with a strategy which is truly transformational, that promotes ethical accountability in our industry and which is based on operating principles viewed favourably by the Commission. We have the green light to make the most of what we view as a huge, untapped opportunity to help grow the diamond business and match the growth rates enjoyed over the long term by leading luxury goods companies."