De Beer mines brand for value

The De Beers 599-carat centenary diamond

A diamond is for ever, so the adverts tell us. But is a suit, tie or handbag?

Wealthier customers may soon have the chance to find out following a decision by De Beers, the world's biggest diamond producer and the owner of the famous marketing phrase, to prospect for value in its name.

The firm is attempting to convert its 113-year-old name into a brand, and include it on a company balance sheet which boasted diamond sales of $5.67bn (£3.85bn) last year.

The De Beers tag would be most likely to be used to adorn High Street jewellery shops specialising in diamond-bearing products.

While the firm controls 60% of the global market for uncut diamonds, the retail market is highly fragmented.

'Shareholder value'

But the firm is also discussing other ideas.

Company profile - LVMH

Based in Paris

Employs 46,000 people worldwide

Sales of £5bn euros (£3.2m) in first half of 2000

Owns brands including Moet & Chandon, Veuve Clicquot, Givenchy, Christian Lacroix, Louis Vuitton, Kenzo, Hennessy, TAG Heuer, Thomas Pink

"We want to realise more benefits for shareholders from the value we believe is enshrined in the name De Beers," the company told BBC News Online.

"We are looking at various options of how to take the De Beers name to market."

LVMH, the luxury goods group which owns the Moet champagne brand and clothing labels such as Christian Dior, is said to have entered talks with De Beers.

Several proposals, including the outright sale of the De Beers brand, are being discussed by the two firms, the UK's Financial Times newspaper said.

De Beers declined to comment on the report.

"It is all very much speculation at the moment," the company spokesman said.

Observers speculate that further details may become clear before the firm releases its annual results on 27 February.

Shake-up

The move follows a strategy shift last year billed as the biggest shake-up at De Beers since the 1930s.

The change saw the company focus on actively selling diamonds rather than, as historically been the case, underpinning gem prices by mopping up excess supply.

The strategy had left the company with a $4bn diamond stockpile which the firm has sought gradually to deplete.