Jewelers react to film about conflict diamonds

updated 7:10 a.m. ET Dec. 8, 2006

NEW YORK - This holiday season some diamond retailers say they are seeing heightened consumer concern about conflict diamonds, the gems mined in war zones that are sold to fund armed conflict and civil war.

Sales of so-called conflict diamonds have helped finance wars that killed millions in Angola, Congo, Sierra Leone and Liberia over the past several decades, and efforts to address the problem have been made within the diamond industry.

But human rights groups are now taking the issue straight to consumers, and with Friday's release of Warner Bros. Pictures' new film "Blood Diamond," diamond retailers are preparing to face more scrutiny than ever before.

Many large retailers, like Tiffany & Co. and Zale Corp., say they have enacted policies to help stem the flow of conflict diamonds. And during the all-important holiday season, when at least half of annual jewelry sales are recorded, retailers want their customers to feel they can shop guilt-free.

They are being assisted in this effort by a $15 million marketing campaign launched ahead of the holidays by the World Diamond Council, which wants potential diamond buyers to understand the movie's premise takes place prior to the Kimberley Process Certification Scheme, which was enacted by governments, non-governmental organizations and the industry in 2002 to track diamonds from mine to jewelry display case, certifying each stone's origin. The film, starring Leonardo DiCaprio and Jennifer Connelly, takes place during the civil war in Sierra Leone in the 1990's.

The industry group took out full-page ads in national newspapers, created the Web site diamondfacts.org to disseminate information, and provided retailers with training pamphlets on the topic.

David Sternblitz, vice president and treasurer for Zale Corp., said Zale abides by the Kimberley Process, buying stones only from those 45 nations that participate in Kimberley, which account for about 99.8 percent of global production of rough diamonds.

Sternblitz says customers can find information outlining Zale's policy on conflict-free diamonds on its Web site.

More on ‘Blood Diamond’ Review: Film showcases destructive trade   Video: Leonardo DiCaprio discusses film Accents leave some actors tongue-tied Interactive: A diamond’s journey Serious talk at ‘Blood Diamond’ premiere Jewelers react to film about conflict diamonds Ivory Coast rebels deny blood diamond trade

"This is something that hasn't been new to us," Sternblitz says. "Since the Kimberley Process in 2002, we've required all suppliers to warranty to us that diamonds are coming from conflict-free areas."

Tiffany & Co. also says it buys diamonds from legitimate miners and doesn't purchase diamonds for cash or in circumstances where the source of the diamond is questionable.

Smaller retailers are aware of the growing interest, too.

"At least one customer a day asks us about it," said Jennie Fiske, who manages The Clay Pot, a Brooklyn, N.Y.-based jewelry retailer. "Over the years, it's become more and more well-known."

Fiske says she's been aware of the issue since 2000 and reassures customers that it's highly unlikely they are getting a conflict gem, since her suppliers buy diamonds through legitimate sources.

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