Hublot and Ferrari Become Partners

Jean-Claude Biver, CEO of Hublot (left), and Luca Cordero di Montezemolo, president of Ferrari S.p.A, seal the deal at the Mugello International Circuit. Photo credit: Raphael Faux.

Luxury Swiss watch brand Hublot says it has entered into a “comprehensive agreement” with the Italian sports car manufacturer, Ferrari, merging the brand images and the commercial activities of both companies.

The two companies say this collaboration will be more that the creation of watch collections, operating a license, or a sponsorship agreement. It’s described in a joint statement as a “genuine exchange between the two brands, a pooling of resources and information.”

Under the arrangement, Hublot becomes the exclusive watchmaking partner in the full range of Ferrari’s activities. This includes the “Official Watch” of Ferrari, “Official Timekeeper” of Ferrari, “Official Timekeeper” of Scuderia Ferrari, “Official Watch” of Scuderia Ferrari, “Official Timekeeper” of the Ferrari Challenge, and partners in Ferrari special events.

Jean-Claude Biver flanked by members of the Ferrari racing team. Photo credit: Raphael Faux

The partnership was announced November 5 during the Finali Mondiali Ferrari race at the Mugello International Circuit—the world finals event that traditionally marks the end of the Prancing Stallion's sports season. The new partnership will then head to the emerging markets of China and the Middle East. Ferrari is a leading luxury brands in China and Hublot is establishing itself in the country with 3 boutiques currently and 12 openings planned by the end of 2012.

“Exclusivity, technology, passion, style: Hublot and Ferrari share many core values and this new partnership between two such highly prestigious brands is an important milestone for both,” said Luca Cordero di Montezemolo, president of Ferrari S.p.A.

“This collaboration, rich in a host of synergies, gives Hublot a massive boost along the road,” added Jean-Claude Biver, CEO of Hublot.

Hermès Q3 Sales Up 15.8% Led by Watch and Jewelry Sales

The cream rises to the top as the best luxury goods brands continue to report robust sales in a difficult economic climate.

Hermès reports that revenue in the third quarter increased 15.8 percent, year-over-year, to 683.2 million euros. Revenue rose by 18.2 percent at constant exchange rates (stripping out the effects exchange rate changes). Sales growth for the Group's own stores was up 19.1 percent at constant exchange rates for the period, despite of a high comparison basis.

The 174-year-old Parisian brand said watch sales rose 22.4 percent (24.9 percent at constant exchange rates) to 37.5 million euros. Under the ready-to-wear & fashion accessories category, which includes jewelry, sales rose 28.9 percent (32.4 percent at constant exchange rates) to 148.1 million euros for the period, ended September 30.

Sales in other product categories are as follows:

* Silk & Textiles, up 21 percent (24.1 percent at constant-exchange rates) to 76 million euros.

* Leathergoods & Saddlery, up 8 percent (10.3 percent at constant-exchange rates) to 319.5 million euros.

* Other Hermes Sectors, up 29.9 percent (32.2 percent at constant-exchange rates) to 25.6 million euros.

* Perfumes, up 11.2 percent (11.6 percent at constant-exchange rates) to 42.7 million euros.

* Tableware, up 15 percent (16.8 percent at constant-exchange rates) to 10.9 million euros.

* Other products (which include John Lobb shoes as well as production activities realized for third parties, such as textile printing, perfumes, tanning), up 22.5 percent (23.3 percent in constant exchange rates) to 22.9 million.

Sales among geographical regions are as follows:

* Americas rose 12.9 percent (21.8 percent at constant exchange rates) to 106.6 million euros.

* France rose 5.4 percent to 111.8 million euros.

* The rest of Europe rose 21.3 percent (20.2 percent at constant exchange rates) to 138.1 million euros.

* Japan rose 4.3 percent (3.2 percent at constant exchange rates) to 115.8 million euros.

* The rest of the Asian Pacific rose 28.9 percent (33.9 percent at constant exchange rates) to 201.9 million euros.

Because of its strong third-quarter showing the company increased its outlook for the year, saying it expects sales growth to be 15 to 16 percent at constant exchange rates.

“Meeting this target will be highly contingent on the business sectors' ability to meet stepped-up demand ahead of the year-end holiday season,” the company said.

Eye Catching Jewelry from the 2012 AGTA Spectrum Awards

A carved jade fish accented with fire opals by Manya & Roumen. It tied for first place among editors who attended the Spectrum Awards editor's event.

There’s been a lot of talk about the winners of the AGTA Spectrum Awards, which were named Oct. 24. And all of it is well deserved. However, there were hundreds of other creative, innovative and otherwise beautiful pieces on display during the media review of the entries on the same day. Here are just a few that caught my eye:

Dagger Brooch with diaspore (17.63 ctw.) accented with rubies (0.58 ctw.) and diamonds (1.73 ctw.) set in 18k yellow gold.

An 18k yellow gold and black rhodium “Sleeping Raven” ring featuring round blue sapphires (4.227 ctw.).

“Guardian of the Deep” pendant made with 19k white gold showcasing an octopus with a silver keshi pearl on round rainbow drusy quartz accented with 1-ct. spinel and multicolored diamonds.

An 18k black and white gold “Medusa” bracelet featuring tsavorite Gamets (3.98 ctw.) accented with black diamonds (4.43 ctw.) and white diamonds (1.10 ctw.) by Yehouda Saketkhou of Yael Designs.

Lotus bracelet with diaspore (30.48 ctw.), pink sapphires (5.62 ctw.) and diamonds (6.94 ctw.) set in yellow gold by Erica Courtney.

Top: 18k green gold ring with 13-ct. green tourmaline accented with diamonds by Lori Auster. Bottom: 18k yellow gold bracelet with watermelon tourmalines (97.01 ctw.) accented with diamonds (2.98 ctw.) by Puja Bordia.

A 14k yellow gold pendant with a 126-ct. citrine accented with more citrines and and faceted Mexican fire opals by Jeanne Cassanova.

Art Deco and 18k yellow gold necklace featuring two triangular cabochon jade pieces (4.08 ctw.), nine pear-shaped rubies, custom-cut onyx, round tsavorite garnets and round diamonds (1.38 ctw.) by Ricardo basta.

An 18k white gold “Pacifier” ring with a 15.5 mm Tahitian cultured pearl accented with tsavorite garnets (2.50 ctw.) and a 0.16 pear-cut diamond.

An 18k white gold brooch featuring an 80-ct. carved aquamarine accented with diamonds (1.17 ctw.) by Naomi Sarna.

A 22k yellow gold and oxidized silver brooch featuring freshwater pearls, drusy quartz and diamonds (0.06 ctw.) by Jill Hurant.

Sterling silver and 18k yellow gold bangle with multicolored gemstones (8.30 ctw.) by Samuel Behnam.

A 14k yellow and rose gold ring with a 12.75-ct. round rubelite tourmaline accented with tsavorite garnets by Karen Sam.

Anglo American Buys 40% Stake in De Beers Group for $5.1 Billion

The Oppenheimer family, which has owned the the De Beers Group  for more than 80 years, announced Friday that it will sell its remaining stake in the company to Anglo American plc for $5.1 billion in cash.

The move will boost Anglo American’s current 45 percent stake in De Beers to 85 percent. Nicky Oppenheimer will remain as chairman of De Beers and the recently hired CEO, Philippe Mellier, will remain in his position, the London-based mining company said.

Anglo American has entered into an agreement with CHL and Centhold International Limited (“CIL”), together representing the Oppenheimer family interests, to acquire their 40 percent interest in DB Investments and De Beers SA, the two companies said in a joint statement.

Under the terms of the existing shareholders’ agreement between Anglo American, CHL and the Government of the Republic of Botswana, the GRB has pre-emption rights in respect of the CHL Group’s interest in De Beers, enabling it to participate in the transaction and to increase its interest in De Beers, on a pro rata basis, to up to 25 percent. In the event that the GRB exercises its preemption rights in full, Anglo American, under the proposed transaction, would acquire an incremental 30 percent interest in De Beers, taking its total interest to 75 percent, and the consideration payable by Anglo American to the CHL Group would be reduced proportionately.

Anglo American had been the largest shareholder in De Beers since it became a private company in 2001 and as a longstanding shareholder in De Beers prior to that.

“De Beers’ geographically diverse portfolio comprises large scale, low cost mining assets with proven distribution, sales and marketing capabilities and further potential from its leading pipeline of greenfield and brownfield projects and an expanding consumer-facing footprint,” Anglo American said in the statement.

“Today’s announcement marks our commitment to an industry with highly attractive long term supply and demand fundamentals,” Cynthia Carroll, chief executive of Anglo American, said in the statement. “Underpinned by the security of supply offered by a new 10-year sales agreement with our partner, the Government of the Republic of Botswana, this forms a compelling proposition.… I believe that the benefits brought by Anglo American’s scale, technical, operational and exploration expertise and financial resources, combined with the unquestionable leadership of De Beers’ business and iconic brand will enable De Beers to enhance its position across the diamond pipeline and capture the potential presented by a rapidly evolving diamond market.”

Nicky Oppenheimer, De Beers chairman representing the Oppenheimer family interests, said: “This has been a momentous and difficult decision as my family has been in the diamond industry for more than 100 years and part of De Beers for over 80 years. After careful and deliberate consideration of the offer, and what is in the best interests of the family, we unanimously agreed to accept Anglo American’s offer. Anglo American is the natural home for our stake as they have been major shareholders in De Beers since 1926 and have a deep knowledge of the diamond business.”

The Minister of Minerals, Energy, and Water Resources, Dr. Ponatshego H Kedikilwe, on behalf of the Republic of Botswana said: “The diamond industry is a major contributor to our economy in Botswana. We are grateful to the Oppenheimer family for their vision and contribution to the diamond industry and to Botswana and we will proudly take forward that legacy with Anglo American. We look forward to building on the excellent relationship we have with Anglo American, both through our ownership of De Beers and through the Debswana joint venture.”

The transaction is expected to be accretive to underlying earnings before depreciation and amortization on fair value adjustments in the year of acquisition, Anglo American said.

New Website, Book and Jewelry Line from Designer Turned Curator Elizabeth Galton

Elizabeth Galton

It’s been a very busy year for London-based jewelry designer Elizabeth Galton. The former creative director of Links of London quit her high-prestige job to start her own company where she serves as a curator, a champion if you will, for other contemporary and commercially viable designers. The result is the luxury jewelry and accessories website, ElizabethGaltonStudio.com.

The site features collections for women and men from more than 60 contemporary luxury designers. The website allows users to easily view and purchase luxury jewelry, gifts and accessories from a new generation of design talent. Prices for gift, bridal and bespoke items range from $64 for soft accessories to $56,000 for fine jewelry designs to more than $100,000 for bespoke pieces.

The thing that’s novel about this venture, is that this well-known jewelry designer is using her stature in the industry and with consumers to bring other designers onto an online medium. It’s Galton’s name and face that brings credibility to the website.

Many of these designers worked either for Links of London while Galton was leading the design department or worked as designers with similar companies. For example, the Duppoini printed silk scarves that are sold on the site were created by Kate Llamas, formerly from Harrods whose designer, Polina Gineva, created the celebrated Alexander McQueen skull scarf. Jenny Mercian, founder of the Sahani Brand of Swarovski encrusted pieces, previously designed for Victoria’s Secrets. Her celebrity followers include Miranda Kerr, Cheryl Cole and Mary J Blige. Then there’s jewelry designer, Claire English, described by Stephen Webster as “Britain’s next big thing.”

Galton says she knows all of the designers on her website and relishes the opportunity to curate and promote their work.

“EG Studio was borne out of a desire to champion such talent, Galton says. “Their designs speak for themselves and present you with the inside track on unique creations—they are my edit of the best that young “Cool Britannia’ has to offer.”

Galton’s editing doesn’t stop on the design floor. She is in the early stages of publishing her first book. Its object is to be a comprehensive guide on jewelry design from a commercial aspect. Her book will include designers from Elizabeth Galton Studio as well as other designers. So again, she will be serving a curator’s role.

EG Classics bracelet

Finally, Galton has returned to the design floor to create an affordable, colorful line of fashion bracelets that will of course be sold on her website. Galton said her EG Classics bracelets are versatile and will add life to any outfit. They will sell for about $89.

ATM Dispenses Diamond Jewelry, Gold and Silver

Bollywood star Raima Sen unveils Luxury ATM in Mumbai.

Why accept money from an ATM when you can get diamond jewelry, gold or silver?

A company in India has built what it says is the world’s first machine that dispenses gold, silver, diamond jewelry and religious jewelry.

The Gitanjali Group, the machine’s creator, is calling it an ATM, but I think a vending machine would also be an apt description. These types of machines have been vending gold at certain places around the world for the past few years. But this is the first such machine that also dispenses other precious metals and jewelry.

The first ATM was recently placed at a Mumbai shopping center and introduced with a ceremony featuring a Bollywood star Raima Sen (pictured).

The machine dispenses gold and silver bars, coins, pendants with religious motifs and a range of diamond-studded jewelry. The convenience of this machine will especially come in handy for those last-minute gifts, the company said.

“It has a particular significance in India, where usually such items are purchased as tokens to observe traditions on auspicious days,” Sanjeev Agarwal, CEO, Gitanjali Export Corp. Ltd., said in a statement. “But it also offers choices for occasions like Valentine’s Day, or to a husband who forgot an anniversary or his wife’s birthday”

The ATM uses a touch screen interface and provides consumers a mix of up to 36 options in different sizes, price points and designs across the precious metals and jewelry categories. This may include coins in various grams, pendants with religious motifs, and heart shaped pendants and diamond studded pendants. Prices range from about $20 to $610. Credit and debit cards are accepted.

The ATM is a part of a larger “Go for Gold” umbrella brand initiative created by Gitanjali to promote the purchase of gold—whether in the form of jewelry or coins/bars—and focus attention on the company’s gold products.

It is appropriate that it is the Gitanjali Group that is introducing this ATM concept. The Mumbai-based company is the world’s largest integrated branded diamond jewelry manufacturer. It is one of India’s largest manufacturer of diamonds and diamond and gold jewelry. It has close to 40 brands in several categories, including lifestyle, watches and 19 jewelry brands. Most of its brands use a Bollywood star for its advertising and marketing. Many of its brands are retailed through company-owned branded stores. The company recently acquired several Italian jewelry and watch manufacturers that it has incorporated into its branded marketing concept. It also owns retail chains in the U.S.

The ATM seems to be just one more creative way for the company to sell its many products.

24-Ct. Graff Diamond Ring Could Fetch $3.5 Million at Auction

Graff diamond ring. Photo credit: Denis Hayoun - Diode SA

Superb jewels, top-quality colorless diamonds, rare gemstones, natural pearls, and signed jewels from Bulgari, Cartier, Boivin, Graff, JAR, Tiffany & Co, Van Cleef & Arpels and Harry Winston will be part of Christie’s Geneva Magnificent Jewels auction on November 16.

Several private collections also will be part of the auction at the Four Seasons Hotel des Bergues, including the collection of Richard Burton’s former wife, Susan Hunt Burton, and a private collection featured in a separate catalog: “Timeless Elegance - Important Jewels from the Collection of a European Family.” (Follow link to read more about this collection).

The top piece among the 360 lots for sale is a 24.30-ct. oval cut diamond ring by Graff. The D color, internally flawless gem is estimated to fetch $2.9 million to $3.5 million (top picture).

The auction of haute joaillerie is expected to fetch more than $50 million.

Diamond “en tremblant” flower brooch, by Bulgari, 1960s. Estimate $110,000 - $220,000. Photo credit: Denis Hayoun - Diode SA

Bulgari will command its own section of more than 40 lots in the upcoming sale. It amounts to the largest sale of Bulgari jewels since a Christie’s Geneva auction in 1993. Among the highlights is an emerald, ruby and diamond sautoir suspending a hexagonal-shaped emerald of 44.90 carats, dated from the 1970s and estimated at $270,000 – $360,000. Also for sale will be a diamond and yellow gold necklace estimated at $73,000 – $89,000.

Diamond and yellow gold necklace by Bulgari. Estimate $70,000 - $90,000. Photo credit: Denis Hayoun - Diode SA

Among the colored gemstones and diamonds to be offered are an 8.11-carat, oval-cut Burmese ruby estimated at $2 million – $2.5 million, a pair of Colombian pear-shaped emerald and diamond earrings, weighing 23.66 and 23.55 carats, estimated at $1.8 million – $2.5 million, and a 55.98-carat Kashmir cabochon sapphire mounted with diamonds as ring by Mouawad, estimated at $800,000 – $1.2 million. A 30.15-carat, D color, VS1 clarity, Type IIa pear-shaped diamond with an antique cut is estimated to sell at $1.9 million to $2.3 million.

Pair of detachable 7.60 & 7.57cts pear-shaped diamond and diamond ear pendants by Van Cleef & Arpels has an auction estimate of $1.5 million - $2 million. Photo credit: Denis Hayoun - Diode SA

Richard Burton, the Welsh actor of stage and screen, was at the height of his fame when he married Susan Hunt, an international model, in August 1976. Among the jewels from the Susan Burton collection are 6.17 carats oval-cut diamond ring (estimate: $56,000 – $78,000), an emerald and diamond necklace by Van Cleef & Arpels (Estimate: $45,000 – $67,000) and a two row cultured pearl, pink tourmaline and diamond necklace with cultured pearl, sapphire and ruby ear pendants (Estimate: SFr. $40,000 – $63,000).

Emerald, ruby and diamond sautoir suspending an hexagonal-shaped 44.90-ct. emerald by Bulgari has an auction estimate of $260,000 - $360,000. Photo credit: Denis Hayoun - Diode SA

From the “Property of a Royal House, Christie’s November sale will present three fancy yellow diamonds: a 79-carat cushion-shaped diamond ring weighing estimated $1.5 million – $2 million, a 67.54-carat, brilliant-cut diamond brooch estimated $1.4 million – $1.5 million and a 32.62-carat brilliant-cut diamond ring with an estimate of $700,000 – $800,000.

From what is billed as the “Estate of a Gentleman,” a selection of 19 jewels created by the famous Swiss jeweler Meister mainly in the 1960s and 1970s. Among the highlights are a diamond fringe necklace estimated at $230,000 – $330,000) and a gold, diamond ruby and emerald snake bracelet estimated at $14,000 – $17,000).

Mystery-Set sapphire and diamond leaf brooch by Van Cleef & Arpels, circa 1930s, has an auction estimate of $300,000 - $500,000. Photo credit: Denis Hayoun - Diode SA

A group of Period and Art Deco jewels featured in the sale is highlighted by a diamond necklace created by René Boivin, circa 1960, (estimate: $340,000 – $440,000) and an emerald and diamond bracelet mounted in platinum, 1930s, estimated at $400,000 – $600,000.