Cotton Incorporated 2008 Annual Report

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Fiber

Agricultural Research

• Continued germplasm testing, increase & release.
• Characterized Bt resistance in Cotton Bollworm.
• Assisted in commercial launch of two new erosion-control products made from gin by-products .
• Conducted an audit of cotton’s energy footprint indicating that cotton generates more energy than it uses.
• Delivered coordinated action plan to help preserve utility of inter national workshop, “Stewardship of Neonicotinoid Insecticides”.
• Conducted a series of workshops: Fiber Quality Workshop for breeders; a Crop Management Seminar on resistant Weed and Insect management, including Precision Cotton, and the “Precision Fertility” (zone management) Workshop.
• Conducted Risk Management Seminars in California, Mississippi, and Texas.
• Successfully negotiated gossypol-related intellectual property rights with Texas A&M University.
• Completed publication of 107-page book, “COTMAN Crop Management Systems.”
• Organized efficiency workshop on the three cotton databases.
• Developed dynamic thresholds for stink bugs that minimize insecticide applications while maximizing profit.
• Engineered and performed economic analysis of new cotton harvest systems.
• Conducted weekly cotton market wrap-up radio program.
• Distributed weekly and monthly written cotton economic commentary.
• Created a Quality Score for breeding that equates to spinning performance.
• Advanced three possible methods to use sensors (e.g., GreenSeeker) for nitrogen management in cotton.
• Reached the prototype stage with four new approaches to lint cleaning.
• Proved suitability of briquettes made from gin by-products as solid fuel for boilers.
• Confirmed the suitability of ground cotton burs shown as replacement for wood flour in thermoplastic decking
• Transferred COTMAN technical support from Univ. of Arkansas to Texas A&M University.

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Fiber Competition

• Completion of over 50,000 fiber, yarn, and fabric tests within the Product Evaluation Laboratory.
• Made contact with over 2,700 potential adopters and current users of EFS® System, including division presence at 79 conferences.
• Developed two hand test methods for surface friction resistance and relative hand value/drape in conjunction with Procter & Gamble and University of California-Davis.
• Successfully steered revision to ATSM Standards on Terminology for Spun Yarns to include ring, open-end, and air-jet spinning terms based on company technical information.
• Developed new standard method for knitted fabric count based on company information.

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Global Product Supply Chain

• Created and made available 59 separate economic and industry publications for print and online distribution.
• The Global Account Management Team met with 442 companies, presenting to nearly 12,000 individuals.
• Partnered with Cotton Council International (CCI) on 13 joint activities promoting the use of U.S. cotton.
• Oversaw trade advertising resulting in a total of 115 domestic ad insertions with a reach of over four million; and 54 international ad insertions with a reach of 1.4 million.
• Co-hosted Cotton Forum Mexico (with CCI) to endorse the trade of U.S. cotton products in the region and to promote company textile technologies. The event was attended by 731 attendees from 235 countries and earned the Fashion International Group “Night of Stars” award for Best Textile Event in 2008.
• Distributed over 25,000 units of technology marketing materials at client meetings, education seminars, trade shows, and other events.
• Fulfilled requests for nearly 5,000 educational CDs as part of the Importer Support Program.

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Consumer Marketing

Advertising

• Reached 96% of target demographic (women 18 – 49) through print, television, and Internet advertising.
• Attracted over three million visitors to the MysteryFabric.com and TheFabricOfOurLives.com Web sites via banner ads and print promotions.
• Initiated foundation for new advertising campaign to launch in Second Quarter of 2009.
• Created and put into rotation five new cottonseed print advertisements building on the Captain Cottonseed character.
• Created and put into rotation two new nonwovens print advertisements, featuring Hal the Nonwovens Engineer, originally introduced in 2006.

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Public Relations

• Placed over 728 media stories, with a combined reach of over 642 million.
• Engaged an outside public relations agency to assist with Sustainability outreach.
• Conducted agency review and identified a new agency to oversee consumer public relations activities in China.
• Secured and oversaw production of a cotton research segment on the Public Broadcasting Service program, “National Agriculture Report.” A five-minute and a shorter two-minute segment will begin airing on PBS and other national networks beginning in January, 2009.
• Entered into a partnership with high-end fashion label, Ruffian, for New York Fashion Week sponsorship and Seal of Cotton trademark visibility in an upcoming art book on Ruffian designs.

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Strategic Alliances

• Partnered with Macy’s on a national program designed to reduce the impact on the environment. One million reusable cotton tote bags branded with the Natural™ trademark were sold in all stores and featured in a variety of communications through which over 230 million impressions were accounted for.
• Collected over 38,000 pieces of denim through the 2008 COTTON. FROM BLUE TO GREEN.® denim drive at colleges and universities, and through retail programs and corporate responsibility initiatives — accounting for over six million impressions.
• Expanded visibility of the COTTON. FROM BLUE TO GREEN.® denim drive and denim sales through a unique joint promotion with retailer G By Guess and the Warner Bros. Pictures property, “The Sisterhood of the Traveling Pants 2.”

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