Calling it a realignment of the organization, DTC CEO Varda Shine wrote to Sightholders, "We have therefore begun a piece of work to start to realign our organization a little better to enable us to better translate your needs into a responsive production and sales strategy – so that together we can grow the value of diamonds for decades to come."

 

"While this is a long term effort that we will talk more about in the months and years to come, we will be taking a few small steps in the near future to drive a new culture forward."

 

DTC and Diamdel are the first two companies to face this change. "After much consideration we will change our corporate identity to the De Beers Group of Companies," Shine said. "Importantly, the identities of most of the wholly or majority controlled De Beers operations (but not the business itself), including the DTC and Diamdel, will be gradually phased-out over time, and those operations (which will continue to thrive) will adopt the overarching De Beers identity."

 

As a result, DTC Sightholders, for example, will become Sightholders of De Beers, Shine explained.

 

DTC's new name will most likely have the terms ‘Sightholder’ and ‘Sales’ and its name, according to a company source, and therefore may be renamed 'De Beers Group Sightholders Sales.' A final decision has not been made.

 

If the restructuring results in a change from the current wide bar-handle with all company heads reporting to the Group CEO, to a divisional structure – sales, mining and retail, for example – this will create a new layer of management that some of the current managing directors may not like, finding themselves a step removed from the company head.

 

Following is Shine's latter to Sightholders:

For an industry that historically evolved slowly, the past several years have seen unprecedented change at an extraordinary pace. A volatile global economy, shifting consumer demographics, new technological innovations, and increased challenges in accessing supply, are forcing all of us to adapt and evolve.

 

Today, and throughout our history, there has been only one source of real long-term value in our industry – the consumer’s desire for diamonds. Consumers view diamonds as a store of emotional and financial value, and the resulting demand ultimately shapes the long-term prospects for all of our businesses.

 

However, for years we have thought of the consumer as the end of the diamond pipeline – with an industry driving their demand without fully allowing their demand to drive us. In fact, for De Beers, the reality of a far more competitive landscape is that the consumer must stand at the beginning of our pipeline, shaping our business and enabling us to anticipate the cyclical needs of our Sightholders so we can continue to adapt as necessary.

 

We have therefore begun a piece of work to start to realign our organization a little better to enable us to better translate your needs into a responsive production and sales strategy – so that together we can grow the value of diamonds for decades to come. While this is a long-term effort that we will talk more about in the months and years to come, we will be taking a few small steps in the near future to drive a new culture forward.

 

The first of these steps will be the consolidation of the De Beers corporate identity. We have been looking at our overall corporate identity for some time and whether or not the De Beers Family of Companies is the best way to describe our organisation in a changing, more competitive, diamond world. After much consideration we will change our corporate identity to the De Beers Group of Companies. Importantly, the identities of most of the wholly or majority controlled De Beers operations (but not the business itself), including the DTC and Diamdel, will be gradually phased-out over time, and those operations (which will continue to thrive) will adopt the overarching De Beers identity.

 

We are taking this step to realign our corporate identity because we cannot expect to enhance our leadership position if we cannot present one clear and simultaneous message to our Sightholders, producer partners, and the wider diamond industry. The phasing-out of the DTC brand will also be an important part of De Beers becoming a more customer-focused organisation. We will no longer have Sightholders of one part of De Beers (the DTC) – instead we will have Sightholders of the entire De Beers Group of Companies. This change is subtle but important and serves as an unambiguous signal to the industry that we are one company with one focus, and that our Sightholders are an integral part of such focus.  

 

We are in the early stages of this corporate identity alignment, but we understand both the importance of the Sightholder identity to your business, and the energy and equity invested in the current DTC Sightholder Signature. We believe the small changes we will make will only serve to enhance the Sightholder identity. We will take a pragmatic and collaborative approach when the time comes to adopt a new Sightholder logo, materials and related documentation, but in the meantime, please continue to use your existing collateral in accordance with the applicable terms and conditions.

 

Lastly, it is important to note that this is a corporate identity realignment – not a structural realignment – and therefore Mahiar, Ricky and the Key Account Managers will continue to support you and your businesses.

 

I hope you are as excited about this transition and the opportunities it brings as I am, and I look forward to seeing you all in the near future.

 

Kind regards,

 

Varda Shine