Former De Beers executive Nicholas Moltke is well aware that the diamond industry has an image problem. It’s evident every time he tells people what he does for a living.
“When I say I work in the diamond business, most people have very negative connotations about what our business represents and its legacy,” he says. “They generally have a very specific perception of mining conditions. They don’t know that the business has changed.”
Having lived in Botswana for five years, Moltke knows the impact diamonds can have. “I saw how diamonds can do good and support local communities,” he says. “There is a great opportunity to develop something that focuses on Botswana and allows retailers to tell this very important story.”
So, following in the footsteps of Canadamark and Forevermark – both of which came with provenance assurances – Moltke has launched Botswanamark, a company featuring gems from the “poster child” for how diamonds can contribute to economic development. The new brand will initially be sold in three stores operated by International Diamond Center (IDC), a 12-store chain based in Clearwater, Florida.
Brian Stamey, IDC’s vice president of marketing and operations, became enthusiastic about the concept after seeing the impact of diamonds on a trip to Africa. But he also had a more practical reason for wanting a certified-origin brand.
“Since the Russian supply is closed to this market, it allows us to have a direct source,” he says.
Of course, the project’s success is far from guaranteed. Many Americans have heard negative things about diamonds in Africa and don’t know one African country from another. There have also been periodic attempts to build Botswana-based brands in the past, but they don’t seem to have lasted.
Still, Stamey is optimistic, saying the line reminds him of the early days of Forevermark. “At first, consumers didn’t know what Forevermark meant,” he says. “But it was a great story, a way to differentiate ourselves. I’m looking forward to building that from the ground up.”
In addition to their blockchain-backed provenance guarantee, Forevermark diamonds are certified carbon neutral through the use of offsets. It’s “not ideal”, Moltke admits, but it’s the best the brand can do until Debswana’s mines become carbon-neutral, which is expected to happen by 2030.
Botswanamark will also donate 1% of its profits to three local charities: Ecoexsist Trust, Learn to Play and Hippo Rollers.
For now, Botswanamark’s diamonds – unlike Forevermark’s – will be sold without a premium, although the tracking, carbon credits, marketing and charitable donations all add costs. But that could change.
“I think the consumer will ultimately be the driver of this,” says Stamey. “If we do our job well and build value into the name, we should be able to get a premium.”
Moltke, who’s CEO of the new company, is just hoping the larger message will resonate. “Natural diamonds have to evolve their consumer proposition,” he says. “If we as an industry are not able to tell the Botswana story, then what are we telling our consumers? We are telling them the same story that we’ve told them for 100 years, that diamonds are a product which stands for love and that they keep their value.
“We are in front of a consumer that demands more and expects more from the industry. We have to connect them with this new narrative.”
