Fabergé Opens Boutique in London

The Fabergé brand continues its return to the world of luxury jewelry under its new owners by opening a store in London. In addition, the company said its watches and jewelry are now available in London’s Harrod’s and it will soon open a store in New York.

It is the first time in a nearly a century that Fabergé, known for its iconic bejeweled eggs, has had a store in London. The boutique is located at 14A Grafton Street in Mayfair.

Due to the repatriation of Russian resources at the beginning of the First World War, the last Fabergé store in London closed in 1915. The store at 173 Bond Street, was visited by royalty, nobility, potentates, tycoons, socialites and connoisseurs from around the world. Fabergé first opened in London in 1906 at 48 Dover Street, moving to Bond Street in 1910.



The new store features a lilac façade that evokes the guilloche and enamel techniques for which Fabergé was renowned, the company said. The interior is a fusion of old and new.

In New York, Fabergé has secured 694 Madison Ave., which will open in spring 2012. In the meantime, Fabergé is hosting special seasonal “by appointment” previews at the Plaza Hotel, Fifth Avenue at Central Park South until December 30.

The new locations carry selections from the key Fabergé collections that include:

* The jewelry collections Les Fabuleuses de Fabergé, Saisons Russes, Le Carnet Bal and the Solyanka Treasures;

* Les Fameux de Fabergé, the recently released one-of-a-kind high jewelry egg pendants;

* Les Favorites de Fabrge, a collection of fine jewelry egg pendants with about 60 designs, rekindling the tradition of Fabergé as gifts for special occasions; and

* Fabergé Horlogerie, a collection of handmade men’s and women’s watches featuring the brand’s guilloche and enamel techniques.

These are the latest of several moves that the brand has made since it was purchased in 2007 by Pallinghurst Resources, a London-based private equity company, from Unilever, a consumers products company.

Pallinghurst reunited the Fabergé brand with the Fabergé family. Tatiana and Sarah Fabergé, great granddaughters of Peter Carl Fabergé, together with John Andrew, make up the Fabergé Heritage Council. which guides the unified Fabergé in its pursuit of Fabergé’s original values, philosophy and spirit. Géza von Habsburg, a leading Fabergé expert and author, serves as Fabergé’s curatorial director.

In 2009, the company launched new jewelry collections, a website and its first boutique in Geneva.

More recently, in July, the company launched the Les Fameux de Fabergé one-of-a-kind high jewelry egg pendants and the Les Favorites de Fabrge fine jewelry egg pendants.

Fabergé was founded in St. Petersburg, Russia, in 1842 by Gustav Fabergé, whoc moved from France to Russia in the 1830s to train as a goldsmith. Gustav’s son, Peter Carl Fabergé (born in 1846) led the firm to worldwide renown, winning the favor of the Imperial Romanov family in the 1880s and the award of the Grand Prix at the 1900 World Fair in Paris.

In 1917, the Russian Revolution brought an abrupt end to the Romanov dynasty, and to the House of Fabergé. The company was nationalized, all production closed down and Peter Carl Fabergé and his family fled Russia. He died in Lausanne, Switzerland, in 1920.

By the time of the Bolshevik Revolution, Fabergé had produced more than 155,000 items spanning jewelry, objects, tableware and accessories ranging from cigarette cases to crochet hooks. The first of the 50 legendary and world famous Imperial Fabergé Eggs was the “Hen Egg” of 1885, with the “Steel Military Egg” of 1916 being the last completed. Two eggs were in preparation in 1917 but were not finished. A handful of egg objects were made as private commissions, including the Rothschild egg, which was sold recently at auction by Christies for $19.5 million.

In a second blow, the Fabergé family in 1951 lost the rights to use their family name in selling Fabergé-labeled designs when protracted and expensive litigation forced them to cede these rights to an American corporation for $25,000.

More recently, Unilevel had the rights to the company before selling it to Pallinghurst Resources.

Fair Trade Gem Company Shows Turnaround, Profit

A Gemfields emerald

Mine-to-market gem company Gemfields PLC reported a maiden profit of nearly $2.6 million for the first half of 2010, ended June 30—a marked turnaround from the same period of 2009 in which the London-based company reported a loss of $201.4 million.

In another turnaround revenues from emerald sales for the period were $20 million, compared with $815,456 for the same period in 2009.

While Gemfields has shares in several mining sites, by far its primary source of revenue and its identity is attached to its ownership of the Kagem emerald mine in Zambia, Africa, quite possibly the largest emerald mine in the world. The company is using the mine (which it purchased in 2007) as the sole source of its emeralds. It also owns a cutting and polishing facility in Jaipur, India, opened in 2008. Next, it’s working on building an exclusive distribution network to purchase rough as well as cut and polished emeralds from the mine. It also wants to work with third party companies to create a certification system for its emeralds and create verifiable fair-trade practices. Finally, it wants to develop a marketing program to be used throughout the supply chain.

Miners show an emerald pulled from the Kagem mine.

Gemfields says this mine-to-market strategy allows it to guarantee the provenance of every gem.

“Natural, untreated gems are at the heart of the operation,” the company says on its Web site. “Our focus—reliable and ethically-produced Zambian emeralds—uphold fair-trade practices while remaining in accordance with the highest level of environmental, social and safety standards. This mission holds true for every gemstone in our portfolio.”

It’s quite an ambitious agenda and at least some of it had to be put on hold as the company struggled through the worldwide economic crisis. But now that it has posted a profit, will it be able fully fund its agenda?

“Considering the extent of the challenges that we have faced over the past year, the vast number of new projects and the strategic changes that we have implemented across all divisions within the Group, I am rather pleased with our results and what has been achieved,” said Ian Harebottle, CEO of Gemfields. “We are now well on our way to positioning Gemfields as a market leader within the premium colored gemstone sector.”

The company reported that its cash at hand is $2.6 million, compared with $6.9 million at the same time in 2009. The estimated value of its emerald stock is estimated at $16.5 million, compared with $17.7 million in 2009.

The average revenue per carat of rough emerald and beryl (also mined at the site) is at96 per carat after a July 2010 auction, which took in a total of $7.5 million.

The company was able to cut costs slightly at the Kagem mine to $1.06 million, from $1.6 million in 2009.

Among the company’s marketing and promotional activities for the period included World Land Trust’s “Emeralds for Elephants” campaign and the Indian International Jewellery Show’s “Jewellery Designer of the Year” awards.

Gemfields is owned by Pallinghurst Resources, a South African private equity company. Pallinghurst purchased the Fabergé brand in 2008 and gave Gemfields the exclusive rights to provide Fabergé with emeralds. The first jewelry line under this new structure launched in 2009 aimed at the ultra wealthy consumer, followed by a more accessible 2010 collection.

Gemfields to Hold Kagem Mine Emerald Auction March 10-14

Emeralds from Gemfields Kagem mine.

Gemfields PLC is holding a Zambian emeralds and beryl auction from March 10-14 in Jaipur, India, where the mining company has a cutting and polishing facility. All of the gemstones will be from the Kagem Mine in Zambia that is owned by Gemfields.

London-based Gemfields has received international interest because it is the only mining company in the world that has incorporated a mine-to-market strategy for the emerald industry. Under the plan, emeralds would come from a single source so the origin of each stone can be traced from the mine to the retail jeweler. In addition, the company is trying to produce emeralds in a way that adheres to fair-trade practices and in accordance with environmental, social and safety standards.

As of now, all emeralds from the Gemfields-owned Kagem mine are cut and polished at the Gemfields-owned facility in Jaipur, or sold to the market uncut. To see its vision through, the company still needs to do the following:

* Build an exclusive network of manufacturers to purchase rough as well as cut and polished emeralds;

* Create a certification program that will tell consumers, among other things, the gem's origin or whether it is treated;

* Have third-party certification of the mine's environmental and social impact; and

* Develop a marketing program that will be used throughout the supply chain.

The company has been trying to establish its mine-to-market initiative since at least 2008. The worldwide financial crisis put the plan on hold. In fact, there was concern in the industry that the company wouldn’t survive. But it has come back and has been holding three auctions per year at different locations.

Gemfields have sent invitations to the top 30 emerald companies in the world and it expect a good response, the Times of India report. The previous year's auction sale generated $7.2 million from 28.9 million carats of rough emeralds and beryl across 56 separate lots, with 49 lots sold.

In another part of the Gemfield’s plan, it has received exclusive worldwide license to supply its gems to the Fabergé brand. Gemfield’s parent company, Pallinghurst Resources, also owns the rights to the Fabergé name. The company, famous for its luxurious eggs, has been re-branded as an exclusive international  jeweler.

Mila Kunis Featured in Global Advertising Campaign for Gemfields

Mila Kunis, recently named “Sexiest Woman Alive,” by Esquire, is the newest ambassador and the face of the latest advertising campaign for colored gemstone producer, Gemfields.

In a statement Gemfields said that Kunis was chosen “for her natural beauty, versatility, intelligence and love of rare colored gems.”

Gemfields primary business is the mining, distribution and marketing of emeralds from the Kagem mine in Zambia. It is working to produce a mine-to-market strategy for their emeralds that it says will be ethical, transparent and sustainable. The company recently acquired Fabergé, and is supplying the luxury brand with Kagem emeralds for its newest creations. Both companies are controlled by Pallinghurst Resources, a private equity company focused on the mining sector.

The advertising campaign with Kunis is photographed by Mario Sorrenti and styled by Anastasia Barbieri, featuring “a fresh-faced and modern Kunis wearing one-of-a-kind emerald and ruby jewelry created by six of Gemfields’ designer partners: Alexandra Mor, Amrapali, Dominic Jones, The Gem Palace, Sutra and Fabergé.”

Kunis toured Kagem, accompanied by Ian Harebottle, Gemfields CEO, and visited several Gemfields-sponsored community projects, including schools and a farming cooperative.

“While in Africa, I learned that the entire journey that each Gemfields stone takes is carefully considered and that the environment and the local communities where its mines are located are held in the highest regard,” said Kunis.

“Mila has blown me away with her energy, enthusiasm and dedication,” Harebottle said.

The global advertising program is running in leading publications in India and is part of a several initiatives in a multi-pronged consumer campaign that Gemfields will roll out this year.

The Kagem mine also produces amethysts. Gemfields other business include a mine in Mozambique for rubies, and prospecting licenses for other gemstones in Madagascar.

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Fabergé and Gemfields Finalize Merger

Gemfields has already started promoting its emeralds through an advertising campaign.

The iconic luxury brand, Fabergé, has completed its merger with colored gemstone miner and distributor, Gemfields. The merger, first announced in November, creates what has been planned all along for Gemfields since its founding fewer than 10 years ago: a way to produce a mine-to-market template for its colored gemstones.

Gemfields owns a majority stake of the Kagem mine in Zambia, which produces emeralds and amethysts, a mine in Mozambique for rubies, and prospecting licenses for other gemstones in Madagascar. Emeralds from Kagem are by far the company’s biggest product.

The plan is that Gemfields will provide an ethical and traceable source of providing its gemstones to consumers, thus fueling demand for its product. To help create this demand, Gemfields already begun an advertising and marketing campaign for its Kagem emeralds.

The merger was managed by private equity mining giant, Pallinghurst, which owned indirect equity interests of 33 percent in Gemfields and 49 percent in Fabergé and also held certain loan interests in Fabergé. After the transaction, Pallinghurst now owns 48 percent of the enlarged Gemfields. The deal reportedly values Fabergé at $142 million and was funded with 214 million shares in Gemfields.

Arne H. Frandsen, Pallinghurst chief executive, previously said that the merged company is the “next step in realizing our vision and strategy for our gemstones and luxury platform…. Once consummated, we will be well on the way to creating the colored gemstone equivalent of what De Beers has created for diamonds.”

“This transaction creates the world’s number one colored gemstone company, operating at both critical ends of the value chain,” Brian Gilbertson, Pallinghurst chairman, said Wednesday. “Gemfields can now take its vision for colored gemstones to the next level and Fabergé becomes the obvious consumer choice for high‐end, ethically supplied colored gemstone jewelry.”

Gemfields previously articulated a number of benefits of the transaction. They include:

* Positioning U.K.-based Gemfields with Fabergé’s heritage operating in the two most profitable segments within the gemstone supply chain;

* Advancing Gemfields’ “Mine and Market” strategy;

* Positioning Fabergé as the colored gemstone retailer of choice within the hard luxury retail sector, a sector with an estimated turnover of $54 billion in 2011 according to the Bain Luxury Market Study;

* Creating marketing, communication, management and supply synergies to deliver operational efficiencies; and

* Creating a platform to further increase Gemfields’ market share within the colored gemstone sector, while gaining exposure to luxury sector multiples and greater influence over product positioning and consumer awareness.

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