The Intersection of Value Marc Lewkowitz of Value ------PAGE 2 Marc Lewkowitz 14Th Annual Supima, President & C.E.O

AUGUST 2021 In This Edition

The Intersection PAGE 1 The Intersection of Value Marc Lewkowitz of Value ------PAGE 2 Marc Lewkowitz 14th Annual Supima, President & C.E.O. Supima Design Competition Upcycling with Supima ver the last 20 years Supima cotton production has seen vari®- Son of a Tailor ability for several reasons. The range during that period has traditionally Not All Socks are Built The Same fluctuated somewhere between 400,000 and 800,000 bales. Based on Kane 11 the latest USDA production forecast from August 12, 2021, the current ------forecast places production around 371,000 bales. This may still be a conservative estimate but is PAGE 3 Oan important development in several regards. The markets have had a few more challenges over the last few years with the beginnings of a Smarter Conversations trade war between the U.S. and China that triggered a weakening of the price basis. China has with Aaron Barcellos traditionally not only been the largest consumer of global ELS cottons, but has also over the last The Museum at FIT few years been generally the largest importer of Supima cotton. Additionally, the global pandemic Announces its Reopening introduced additional market challenges and disruptions through the addition of a lot of unknown ------factors affecting the brand/retail level all the way upstream through the manufacturing suppliers. The results ended with prices for ELS cotton plummeting to near historical low trading levels around PAGE 4 $1/lb. These confluences have not only led to the current reduction in production, but have also July Licensing Update subsequently resulted in the recent rally in pricing and the near record-setting demand that was STAY CONNECTED experienced during this past 2020/21 crop year. The prices to start last year’s crop were at levels below the cost of production and the returns to growers at those levels is simply not sustainable. The idea value can be depressed through the supply chain to a point where the participants in the supply chain are not viable, should be a warning to the entire supply chain that the system everyone is dependent upon is not one that is functioning in a healthy way to be able to support all those dependent on it. Near record sales and export shipments for the 2020/21 crop year, along with increasing demand, current rising prices trends, and a new smaller crop will place some additional constraints on the entire market. Valuations will need to be at support levels that enables the producers of Supima cotton to be viable and manage all the impacts in terms of rising costs for inputs, labor challenges, material and resource challenges, all while continuing to invest and continue to push forward on initiatives that support the upstream demands centered around greater authenticity Save The Date and transparency. The supply chain will need to function more collaboratively and will require better 14th Annual levels of communication for planning and coordinating to deliver upon consistent and uninterrupted Supima Design Competition supply and availability to all the programs that depend on Supima cotton. Supima has established a broad global connected network and continues to be here to sup- WHEN: Thursday, September 9 port our partners and their programs for continued success. For those Supima partners who are TIME: 11:15 am EST seeking to enhance their connection to the supply chain and engage more on aspects around authenticity, origin verification, transparency, and traceability, we are here to support you. Supima WHERE: 608 Fifth Avenue is already working with a number of our partners on doing the deep dive and foundational work to New York, NY deliver upon the best practices to enable our partners to bring forth the most authentic and best LIVE STREAM: Instagram Live quality products for their customers. @Supima & @luxurylaw Lights, Camera, Action!

he stage is set for the 14th showing of the Supima Design Com- petition, and you’re invited. Scheduled for September 9th at 11:15 am EST, this year’s SDC will be held at 608 Fifth Avenue in New York City and will be hosted by world-renowned image architect, Law Roach. With audience members and select judges in atten- Tdance this year’s show will not only be a live event but will also be streamed on Instagram Live.

THE 2021 SDC FINALISTS ALL VYING FOR A CASH PRIZE OF $10,000 ARE:

• Jiarui (Ruby) Cai – Fashion Institute of Design & Merchandising, Los Angeles, CA • Bora Kim – School of the Art Institute of Chicago, Chicago, IL • Yitao Li – Fashion Institute of Technology, New York, NY • Cat Pfingst – Drexel University, Philadelphia, PA • Alana Tolliver – Kent State University, Kent, OH • Yuki Xu – Rhode Island School of Design, Providence, RI

Upcycling Not all Socks with Supima are Built the Same candinavian apparel brand, Son of a Tailor continues to do its part to change the way fashion is made and sold. By following n an industry that hasn’t shown any meaningful change a direct-to-consumer business model in over 50 years, east coast- based Kane 11 is trans- Sthat includes made-to-order clothing, responsible forming the way socks are made and sold. With the production practices and environmentally sound fabrics, Son of a Tailor has introduction of individual sizing, Kane has elevated the been able to streamline the complicated and tangled web of the production consumer buying experience by ensuring the perfect and minimize waste in clothing production. Ifitting sock that’s designed for comfort and style. The brand’s Continuing with that mindset the company takes it one step further with offerings include eleven individual sizes for men and seven its collection of limited edition, upcycled rugs. Crafted from cut-offs from its for women, all with comfort technology that includes full foot cotton products, Son of a Tailor is turning production waste into unique pieces cushion, seamless toe tech, and heel fit system and premium for the home. The capsule collection of rugs, made in a range of colors and fabrics including American grown Supima cotton. Known for patterns, are produced from the same material as its clothing, 100 percent, its soft hand, strong fibers and deep color retention, Supima’s American-grown Supima cotton. Known for its strength, color retention and extra-long staple cotton ensures added comfort and durability incredible softness, Supima’s extra-long staple fibers are the foundation for to these socks. Offered in multitude of style and colors, Kane a product that will stand the test of time. 11 socks are sure to be last sock you’ll put on. Learn more about Son of a Tailor at www.sonofatailor.com Shop the full collection at https://kane11.com v PAGE TWO Smarter Conversations with Supima Board Member and Producer – Aaron Barcellos eatured in the tenth episode of the U.S. Cotton Trust Protocol podcast se- ries Smarter Conversations, Supima producer and Board member, Aaron Barcellos discusses the innovations and technological advancements in the cotton industry. With a goal of increasing crop yield and reducing agricultural inputs, Barcellos addresses the importance of education and change Fin today’s agricultural industry. Founded in 2020, The U.S. Cotton Trust Protocol is a voluntary program for U.S. cotton producers, which allows reporting on six key sustainability metrics from the farm-level. Firmly rooted in established principles of continuous improvement, this initiative looks to drive all U.S. cotton production towards their 2025 sustainability targets and beyond. Learn more about The U.S. Cotton Trust Protocol and hear what Aaron Barcellos has to say at https://trustuscotton.org/most-high-tech-industry-you-never-heard-of/

The Museum at FIT Announces its Reopening with a Special Exhibition

nown for its innovative and award winning special latest fashion trends, the products are interpreted into several themes exhibitions, The Museum at FIT has been educating that include love, beauty, sex, sin and gendered identities, to name a few. and inspiring audiences with its exhibitions, pro- The breathtaking exhibition includes some of the world’s leading de- grams and publications for over 50 years. With a signers, past and present, but perhaps one of our favorite pieces on permanent collection of some 50,000 garments and exhibition is an evening dress designed by Luis Estévez from 1957. The Kaccessories dating as far back as the 18th century, MFIT exhibits his- dramatic hand-screened fabric was made using American-grown Supima torically significant direction clothing, accessories, textiles and visual cotton. The evening dress sold in select specialty and department stores materials with an emphasis on contemporary avant-garde fashion. including Neiman Marcus and was photographed by William Helburn Just in time for fall MFIT has announced its newest exhibition, Ravish- for a Supima advertising campaign in 1957. ing: The Rose in Fashion. Set to open for the first time in over a year, the Ravishing: The Rose in Fashion exhibition runs through November special exhibition explores the rose’s influence in fashion and culture, 28, 2021 with special safety measures in place. along with the symbolism and myths it has inspired. Featuring more than To find out more about the exhibition visit: www.fitnyc.edu/museum/ 130 items ranging from luxurious hand-woven 18th-century silks to the exhibitions/ravishing-the-rose-in-fashion.php v PAGE THREE All In the Family Supima is excited to introduce our newest group of licensees for the month of July. Supima continues to focus on expanding its network of manufacturers, brands and retailers in an effort to ensure that each and every product that carries the SUPIMAt label is sourced from a recognized supplier. With an all-time high Licensing of over 550 licensees across the global supply chain, interest in becoming a Supima partner continues to grow at an unprecedented rate. Update • Clifton Export Private Limited (India) – Manufacturer – Apparel • Gaurav International (India) – Manufacturer – Apparel • Hanro International (Austria) – Brand • Levi Strauss (India) Private Limited (India) – Brand • Marisof (Portugal) – Manufacturer – Knit Fabrics • Zhangjiagang Jinling Textiles Co., Ltd. (China) – Manufacturer – Woven Fabrics, Trader - Fabrics

Be sure to visit our supplier directory for a full list of licensed companies at www.supima.com/industry-resources/suppliers.

BE SURE TO VISIT OUR SUPPLIER DIRECTORY FOR A FULL LIST OF LICENSED COMPANIES AT WWW.SUPIMA.COM/SUPPLIERS.

PRESORT FIRST CLASS U.S. POSTAGE PAID PHOENIX, AZ 1710 W Ranch Rd, Ste 205 PERMIT NO. 1662 Tempe, AZ 85284

Return Service Requested

IMPORTANT WEB LINKS FOR AMERICAN PIMA CROP INFORMATION

Supima offers a variety of reports for growers, manufacturers and retailers of American Pima cotton in the areas of specific product information, overall market data, and background research. The reports are updated frequently with the release of new data and are available for use by anyone interested.

USDA - AMS Pima Spot Price (Daily): USDA - FAS Export Sales Report (Weekly): http://bit.ly/AMSPimaDailySpot http://bit.ly/FASWeeklyExportSales

USDA - AMS Cotton Reports: Classing Reports: http://bit.ly/AMSCottonReports By Office: http://bit.ly/AMSPimaClassingOffice By State: http://bit.ly/AMSPimaClassingState USDA - NASS U.S. Production Estimates (Monthly): http://bit.ly/NASSCropProduction U.S. ELS Competitiveness Payment Report (Weekly): http://bit.ly/FSAELSCPPReport

PAGE FOUR