STAY CONNECTED

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Fair and Responsiblein the New Normal

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A Day For Dear Old Dad----------------------------

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Weekly Export Summary

Mask Buying Made Easy----------------------------

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Supima In The News

Insanely Cool Tees

Just For Her----------------------------

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April Licensing Update

In This Edition

he 2019/2020 crop year has been a particularly tough year for the American Pima cotton growers. Like any year farming cotton, there always seems to be a unique set of challenges and hurdles that the growers need to

overcome to grow a successful crop.The last crop year got off to a respectful start and even though the average yields for the year

ended up at 1,472 lbs./acre, this was only second to the prior crop year with the highest average yield over the last 5-years, and the second highest on record. The resulting production yielded 668,750 ginned bales, or 685,500 statistical bales of a 480-pound net weight. This represented over a 14% decrease in production from the 2018/19 crop year where 801,000 statistical bales were produced.

Normally when supplies shrink, it suggests there will be an offsetting increase in prices. That did not transpire this year as the ongoing trade war with China was further complicated with additional trade tensions. This included tariffs on cotton going into China and also on products coming into the U.S.A. from China, ultimately depressing the brand and retailers’ capabilities of committing to sourcing products through their traditional sourcing channels. While production decreased around 115,000 bales, this year we have also seen sales of American Pima into China collapse from the 241,800 bales sold and shipped to China in the 2018/19 crop year, to only 87,500 bales sold to China so far this year.

This drop more than offset the production shortfall, and despite some increases in imports by other importing nations such as India, Pakistan and Bangladesh, were not enough to adjust for the change. With the pre-existing and additional market pressures of the trade war with China on prices, along with the addition of the global COVID-19 pandemic, those prices have fallen well below the cost of production.

For the 2020/21 crop year planted last month, the consequence of the low prices will see a further significant decline in American Pima production with industry projections suggesting production could be off 30-40%. Global ELS production forecasts are also indicating decreases in the other ELS and LS producing regions for the coming year. As the world moves through this global pandemic and finds new business strategies, this could pose future supply challenges as textile production begins to ramp up and brands and retailers begin to reengage with their consumers through physical retail.

With the approval of the Supima Board, Supima has made the decision and has communicated to the first handlers of American Pima cotton, the merchants, co-ops and brokers, that for the 2019/20 crop year, Supima is suspending the collection of the bale dues normally collected by the first handlers and paid to Supima for the promotional and demand building work Supima does on behalf of the American

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#SUPIMASTRONG COVID-19 RELIEF PROJECT

MAY 2020AMER ICAN GROWN | SUPER IOR | RARE | AUTHENT IC

Marc LewkowitzSupima

President & C.E.O.

Fair and Responsible in the New Normal

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Fair and Responsible in the New Normal continued from page 1

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Pima cotton growers. This means for the 668,750 ginned bales of the 2019/20 crop year, the normal $3 per bale assessment will not be collected. Supima has received some bale dues for the crop year and we are working with the first handlers to immediately refund those funds. Those refunds will be redistributed by the first handlers directly to the growers whose cotton was already invoiced, and no further collection will be made for Supima bale dues for any bales from the 2019/20 crop year. This exceptional time calls for some drastic steps and we hope this action will help to ease a bit of the impact from the global market on the severely impacted growers.

Despite the direct challenges being faced by the beginning of the supply chain, there are many positive activities emerging, evolving and/or es-calating in terms of the downstream partners that are looking at business with a certain new urgency. The current global crisis has served to highlight many of the issues in the textile supply chain. As many brands and retailers’ initial reac-tions were to put the brakes on at the start of the COVID-19 pandemic, this caused a cascading effect on the entire upstream supply chain with devastating consequences. With the self-im-

posed pressures of a consumerism model built around synthetic valuations, this has stripped margins out of the entire supply chain leaving business to look at today’s dollars to pay yes-terday’s expenses without a base to build and grow upon. Those decisions and choices have resolved themselves clearly in the current crisis with businesses left without income, limited cash reserves, and bankruptcies and insolvencies.

There is an abundance of conversation grow-ing in the broader textile industry acknowledging the problems and the shortcomings of what was business as normal.That model was often not fair, nor responsible, and was always framed around the consumer through a common claim that a consumer is not willing to pay more for a product. Here the facts are buried in the truth. It is a simple claim to make, but what is the basis and what is it actually predicated on? What options were ever presented to a consumer that gave them a choice and could be used as a point of reference? What determines the current pricing model for programs and products? Truth is often shaped by perception and complacency and regularly leaves out the practical business rationale and principles for doing the business in the first place.

There will be changes, and the future will take on a new shape. One of those voices is Andrew Olah, the founder of Kingpins, a global denim tradeshow, who launched a new foundation on January 1, 2020 called Transformers Foun-dation. This new entity will take a head-on ap-proach with the denim supply chain to address social responsibility, sustainable cotton, respon-sible chemical management and consumer ed-ucation. Andrew has been outspoken against misinformation and the opaqueness of the textile supply chain. He speaks to much of the rationale to address the industry shortcomings in two re-cent posts that you can read here:

Where We Stand On Cotton: https://king pinsshow.com/where-we-stand-on-cotton/

An Infection In The Industry: https://king pinsshow.com/founders-letter-an-infection- in-the-industry/

As the subject and conversation continues to develop in a broad audience, there are brands al-ready engaging and taking proactive steps to do things the right way that supports the entire supply chain. Doing the right thing is also not cheap and certainly not free. There is a responsibility and au-thenticity that comes with the business decisions to choose to build a brand, program and product that is meaningful and has value in quality, and where price is not the first and last consideration.

Theory, a New York based brand has worked closely together with Supima, Albini (a premier spinner and fabric weaver in Italy), and Oritain (a forensic sciences company that provides origin verification for Supima cotton) in the launch of the Good Cotton program as part of their Theory For Good. The Theory For Good campaign is an inclusive approach considering the future and a supply chain that is responsible to “the people that make the clothes, the people that wear them, and the planet.” The Good Cotton program rep-resents one of three noble fibers that also include wool and linen in the overall program and strategy.

American Giant, a San Francisco based company, is a hallmark example of a grassroots American company driven with a clear and sim-

ple idea: MAKE THINGS BETTER MAKE BET-TER THINGS. With a made in America strategy, using U.S. grown cotton and U.S. manufactur-ing, American Giant has been able to create an incredibly strong and resilient product range of quality products that have received critical ac-claim. The business principle clearly addresses the rational approach in their business and the commitment not to replicate the shortcomings that have failed much of the industry: “Mega-cor-porations, obsessed with handing profits over to shareholders, grow bigger and bigger, churning out cheap stuff that leaves us all feeling empty.” American Giant makes a visceral decision to do things differently with their award winning hoodies and their Airy Supima Tees. The below image captures the essence of the decision and choice that they make to be responsible.

There are still many uncertainties in the com-ing months ahead with lots of challenges and opportunities as the industry continues to push forward and evolve. It is fair to say that nobody yet has a clear indication of what is next and where we are all headed. Supima is committed to supporting our partners across the supply chain and working together to bring quality and responsible programs to life. We will work collab-oratively to support initiatives and the authentic efforts of our current and new partners. Even as the retail market is in one of the worst predica-ments of our lifetimes, there are new licensees emerging and new SUPIMA® products launch-ing throughout this chaos. The fundamentals of the businesses that are striving to do the right thing and to be better will continue to move the needle in a positive direction. With reports of record-setting unemployment figures, it will be important to support the retail industry as we work our way out of this pandemic. The cheap value driven concept will have to change as it is not sustainable, and consumers will have to approach their buying decisions based on supporting the businesses and the real costs of doing business the right way. Quality, respon-sibility, sustainability, made in America all have inherent costs. It is just not a label or a claim of certification that should deserve your support. It is the fair value of a product that supports the entire supply chain all the way back to the grower that deserves all of our support. Yes, it will cost a bit more, but the benefits will extend to all of us.

Good Cotton is extra long staple SUPIMA® cotton, recognized as one of the softest and most durable cottons in the world. To ensure our cotton is verifiable from the farm to the product, we have partnered with Oritain, which uses forensic science to validate our Supima cotton from the point of origin where it was grown to the mill in Italy where it is responsibly woven into cloth.

Fast Fashion Isn’t Fashionable. Your clothes should look great, but they should also be built to last and made ethically. For our Airy Supima Ts, we live up to that idea with American-grown cotton and world-class needlework. We use supima cotton, which has long, stable strands that make our shirts softer, sturdier, and take colors better. Just 1% of cotton grown in the world is supima cotton, and it’s one of the best natural fibers you can find.

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A DAY FOR DEAR OLD DAD

CremieuxIt wouldn’t be Father’s Day without every dad’s favorite look, the polo shirt. Elevate your Dad’s wardrobe options with Cre-mieux’s Supima Cotton Pique Garment Dye Polo. Available in 9 colors and 7 sizes, this polo features a three-button placard, tennis tail, and embroidered crest on the left hip. The premium pique fabric is made of 100% Supima Cotton giving it a luxurious feel that will last for seasons to come. www.cremieux.us

Save Khaki United Save Khaki United has an amazing short that will surely become Dad’s favorite this summer. The Supima Fleece Sweatshort is made with 100% Supima Cotton and offered in eight stylish colors. The internal drawstring ensures the perfect fit with completely functional side pockets and a single back pocket. Whether he’s lounging at

home or meeting friends at the beer garden, these shorts are perfect for the Fathers that dress for comfort, but still want to look put together. www.savekhaki.com

Tommy Bahama Dads are notorious for having the same shirt in every color, so instead of fight-ing him on it, why not give in and go with it? Tommy Bahama’s iconic Emfielder Knit Camp Shirt has been given an up-date. The classic shir t, made with an even higher percentage of Supima Cot-ton, is being offered in 16 different colors and features a straight hem with side vents and a button front. The higher percentage

of Supima Cotton makes the Emfielder even softer and more comfort-able. Perfect for any barbeque, date night, or just running errands, Dad will definitely appreciate the upgrade to his wardrobe with this comfy, classic. www.tommybahama.com

Banana RepublicIt’s probably time for Dad to update his un-derwear drawer this Father’s Day and Ba-nana Republic’s Stretch Supima Cotton Boxer Brief should be top on your list. With a soft, elastic waistband and flatlock seams for ultimate comfort, these briefs will be a sure fire hit. Made from consciously sourced Supima cotton, these boxer briefs are sustainable, durable, and comfortable, a definite purchase for Dad. www.bananarepublic.gap.com

Stance Stance, an awesome Orange Coun-ty California company, is known for its premium made, fashion-forward socks, and the company’s Blutone dress socks are no exception. These stylish socks are no afterthought when it comes to making a statement. The bold pattern and premium craftsmanship will give Dad a leg up in the boardroom. Made with American-grown Supima Cotton, of course, these socks will be an instant hit this Father’s Day. www.stance.com

As Father’s Day approaches, it is important to find a special gift for theman that does it all. Most Dads are creatures of comfort, so why not up their

fashion game this Father’s Day with one of these must-have items craftedfrom Supima Cotton. Every Dad can use a little help in the style department

and you won’t go wrong with this curated list of sought after brands.

Brooks Brothers Another classic that Dad is sure to love is Brooks Brothers’ Regent Fit Oxford Sport Shirt. An icon-ic dress shirt with a modern trim fit, the chest and sleeves are cut slimmer to the body making for the perfect drape. Each shirt is made with American-grown Supima cotton, giving this shirt an incredibly soft-hand and durability no matter how many washes. The genuine mother-of-pearl buttons and a left chest pocket add to the style quotient, ensuring dad is dressed for success. Dad will be looking sharp and feeling comfortable in this great dress shirt. www.brooksbrothers.com

For the week ending May 21, 2020 and shipments through May 14, 2020

May 21 — There were (600) bales in net new sales repor ted for the week versus (-400) bales repor ted the previous week. Current registered

export sales for the 2019/20 crop year now total 546,800 bales. This level of sales is 77.3% of the sales level at the same time last year when 707,300 bales in sales had already been registered. Current shipments stand at 84.0% of last year with 410,300 bales shipped versus 488,400 bales shipped at the same time last year.

There were 700 bales in new purchases made this week from Korea (300), Turkey (300) and Ja-pan (100).

There were no bales in destination changes this past week.

There were no bales in cancellations this past week.

Export shipments this past week totaled 4,600 bales versus 7,900 bales the previous week. Ship-ments this past week went to Pakistan (1,300), China (1,100), Turkey (600), Bahrain (400), Indo-nesia (400), Bangladesh (300), India (300), Czech Republic (100), and Greece (100).

The top five leading importers for the 2019/20 crop year are led by India with purchases of 183,700 bales. China, Pakistan, Vietnam and Ban-gladesh round out the top five with purchases of 87,500 bales, 65,800 bales, 46,200 bales, and 28,400 bales respectively. These five nations ac-count for 75.3% of all the export-based purchases of American Pima made to date this year.

There were no bales in net new forward sales reported this week. The current new crop sales totals stand at 33,800 bales and 0 bales respec-tively for the 2020/21 and 2021/22 years.

Weekly ExportSummary

MASK BUYING MADE EASYAs more and more states begin the process of opening, masks continue to become

part of everyday life. Wearing masks have been shown to protect those around us if social distancing isn’t an option. As the new normal for the foreseeable future and with limited options available, fashion brands have changed gears offering consumers more personalized mask options with fashion forward designs. To make things easier for you, Supima has curated a list featuring our brand partners that have stepped up their offerings to include masks. So have some fun with it and make a statement.

Mulch CaliforniaThe team at Mulch has converted their production line to shift from clothes to produc-ing safety masks. After following the CDC’s advice, they have produced two different

reusable non-surgical masks. The idea is so everyone can wear a mask whether they are working in an essential business or going shopping at the grocery store. Using 100% Supima cot-ton, these reusable double-layered masks are built for comfort and wear ability that is breathable, comfortable and lightweight. www.mulchcalifornia.com

Accel LifestyleKnown for their anti-bacterial activewear, Accel Lifestyle shifting gears early on and have been using their proprietary anti-bacterial Perma® fabric to produce a breathable, two-layer face mask. The five-pack masks are made in the USA and are offered in black or white depending on their current stock availability. www.accellifestyle.com

Michael StarsIn addition to making and donating thousands of non-medical masks to support health-

care facilities across the U.S., Michael Stars is also creating various styles and colors for you. From pleated stripes to the sold out leopard prints, the Michael Stars mask are sold in 2-packs with two color options. The made in the USA masks are washable and reusable and let you have some fun with your looks. www.michaelstars.com

Peacock AlleyKnown for their premium bedding, Peacock Alley is also offering premium face masks. For every mask sold the company will donate a mask to professionals Mayo Clinic and others in the medical community. The double-layer, tightly woven fabric is made of 100% cotton using excess fabric in an effort limit waste and conserve resources. Offered in a pack of 4 or 8, Peacock Alley’s masks are made in the company’s Dallas workroom. www.peacockalley.com

Brooks BrothersBrooks Brother started early in the crises converting its U.S. factories to manufacture much needed masks and gowns for front line workers. Now the company is offering its premium grade masks to consumers in 5, 20 and 100 pack options. Proudly craft-ed in the USA, Brooks Brothers three-pleat, single-ply masks are sewn in their own

factories using state-of-the-art non-woven material that has been tested to filter 86% of particles of 0.3 microns. Featuring higher filtration capacity than standard cotton fabrication, this superior material has been developed with a leading university to provide protection and high breathability to minimize interior humidity inside the mask when wearing for long periods of time. www.brooksbrothers.com

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StatesideAs staying inside is the new norm, it is only natural to want to wear clothes that emphasize comfort. According to Stateside, comfort and fashion can go hand-in-hand with their Supima Mock Neck Dolman top. The top is a short-sleeved, mock neck tee, with a relaxed fit that can go with jeans or sweats. Available in black, charcoal, or white, the Royal Supima cotton blend is referred to as the cashmere of cotton, and is sure to please as a great gift. www.shopstateside.us

MaloufIt seems like we’ve spending more time in bed so why not upgrade your bedding. Get your girl the sheets she deserves with Malouf’s Supima Premium Cotton Sheets.

Made with love and American-grown Supima cotton, these sheets are top-tier and made softer with every wash. The fibers are an impressive 35 percent longer than typical cotton and produce smoother, softer, and cleaner yarns. They are breathable, pill-resistant, and have extra-deep pockets for mattresses starting at 6 inches and reaching 22 inches. www.maloufsleep.com

Brooks BrothersSince loungewear is the theme of 2020, she is sure to love these luxurious Brooks Brothers Floral-Print Supima Cotton Poplin Pajama Set. With the Brooks Brothers Women’s Collection by Creative Director Zach Posen, the print on these pajamas is striking. With pajamas that are both beautiful and extraordinarily comfortable, you may even end up wearing these out for that quick cup of coffee. www.brooksbrothers.com

Lands’ EndWith everybody suddenly having all this free time, spring clean-ing has begun. With all the purging, some new towels seem like the perfect gif after cleaning out the linen closet. Luckily, Lands’ End has their Supima Cane Weave Jacquard Border towel. Available in either a light lake blue or a cool aqua, these towels have superior softness and beautiful pattern work. Made of American-grown Supima cotton, the secret of the extreme softness of these towels are the extra-long, fine fibers that impress everyone who uses it. www.landsend.com

L.L. BeanNo matter what is happening in the world, a v-neck t-shirt will al-ways be a classic. She will adore L.L. Bean’s Pima Cotton Shaped V-Neck that comes in a variety of shapes, sizes, and colors. A classic will always be a classic, although this one comes with the Supima upgrade of ridiculously soft cotton. This feminine tee will be the most versatile in her wardrobe and includes everything you love about Supima cotton in a t-shirt. www.llbean.com

JUST FOR HERNow more than ever, it is important to tell those you love how much you ap-

preciate them. As quarantines around the country are slowly lifted, why not head out for a little retail therapy. Supima has made it simple for you to choose a gift for that special woman in your life. We’ve put together a list of some amazing brands with quality products using American-grown Supima cotton that make the perfect gift to show her you love her. T his spring, Supima launched the #SupimaS-

trong COVID-19 Relief Project in response to the Coronavirus pandemic. The project saw

Supima donate over 2,000 yards of fabric to Supima Design Competition alumni, Project COVID-19 Gar-ment Revival, Sew4Lives, and additional designer volunteers to get masks to the front line. Designers stepped up to meet the crisis needs sewing and do-nating to those on the frontlines.

Featured in countless stories about the relief proj-ect and garnering more than 41 million impressions, Supima’s decision to support the community during this extraordinary time was a concerted effort to not only supply essential workers with much-needed pro-tection, but to also leverage media coverage to bring awareness to all who have sacrificed their safety caring for those fallen ill by the virus. Coverage from key out-lets that spotlighted the relief project spanned across various fashion and industry trade outlets including HomeTextilesToday.com, PopSugar.com, Sourcing-Journal.com, UsMagazine.com, WWD.com, and more.

SupimaIn The News

Leave it to Uniqlo to wrangle two of the coolest cats in the arts to collaborate on a limited-edi-tion collection of t-shirts and hats. Gram-

my-winning musician, Billie Eilish and famed Japanese artist, Takashi Murakami, have come together to cre-ate a true expression of art. Taking Eilish’s signature boxy t-shirt style, the two artists feature a string of new graphics, bold prints, and exclusive logos meant to showcase each artist’s unique vision. It’s also no surprise that the fast-fashion retailer tapped Ameri-can-grown Supima cotton as the canvas for this collab. The premium characteristics of Supima cotton elevates this one of a kind collection. Accounting for the top 1% of the world’s cotton, Supima’s extra-long staple fibers ensure a lusciously soft-hand and long-lasting vibrant colors. Available online and in stores, the Billy Eilish by Takashi collection is already a hit so be sure to get yours now before its too late. www.uniqlo.com

Insanely Cool Tees

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PRESORTFIRST CLASS

U.S. POSTAGE PAIDPHOENIX, AZ

PERMIT NO. 1662

IMPORTANT WEB LINKS FOR AMERICAN PIMA CROP INFORMATION

Supima offers a variety of reports for growers, manufacturers and retailers of American Pima cottonin 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):http://bit.ly/AMSPimaDailySpot

USDA - AMS Cotton Reports:http://bit.ly/AMSCottonReports

USDA - NASS U.S. Production Estimates (Monthly):http://bit.ly/NASSCropProduction

USDA - FAS Export Sales Report (Weekly):http://bit.ly/FASWeeklyExportSales

Classing Reports:By Office: http://bit.ly/AMSPimaClassingOfficeBy State: http://bit.ly/AMSPimaClassingState

U.S. ELS Competitiveness Payment Report (Weekly):http://bit.ly/FSAELSCPPReport

1710 W Ranch Rd, Ste 205Tempe, AZ 85284

Return Service Requested

Supima is excited to introduce our newest group of licensees for the month of April. 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 SUPIMA® label is sourced from a recognized supplier. With an all-time high of over 570 licensees across the global supply chain, interest in becoming a Supima partner continues to grow at an unprecedented rate.

Clan srl (Italy) - Men’s T-shirt BrandEl Ganso (Acturus Capital) (Spain) - Men’s Sweater BrandI am William Thomas, LLC (USA) - Men’s T-shirt BrandJ. Hilburn, Inc. (USA) - Men’s Woven Shirt BrandJust Subtle (USA) - Men’s & Women’s T-shirt Brand

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

All In the Family

LicensingUpdate

To learn more about Supima’s consumer initiatives, industry news and updates, please visit SUPIMA.COM