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<SEC-DOCUMENT>0001193125-08-038348.txt : 20080723
<SEC-HEADER>0001193125-08-038348.hdr.sgml : 20080723
<ACCEPTANCE-DATETIME>20080226115630
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-08-038348
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20080226

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INGLES MARKETS INC
		CENTRAL INDEX KEY:			0000050493
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				560846267
		STATE OF INCORPORATION:			NC
		FISCAL YEAR END:			0929

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 6676
		CITY:			ASHEVILLE
		STATE:			NC
		ZIP:			28816
		BUSINESS PHONE:		7046692941

	MAIL ADDRESS:	
		STREET 1:		P O BOX 6676
		CITY:			ASHEVILLE
		STATE:			NC
		ZIP:			28816
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML><HEAD>
<TITLE>Correspondence</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">February&nbsp;26, 2008 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">H. Christopher Owings </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Assistant Director </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">Scott Anderegg </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Staff Attorney </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">Ellie Quarles </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Special Counsel </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">United States
Securities and Exchange Commission </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">100 F Street N.E. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">Washington, DC 20549-7010 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Dear Messrs. Owings and Anderegg and Ms.&nbsp;Quarles: </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We are in receipt of your letter dated January&nbsp;25, 2008 regarding our Definitive Proxy Statement filed on Schedule 14A. Our responses to your
comments are provided below. We have repeated each of your comments in full and the response to each such comment is noted directly below the quoted comment. As noted in response to comment No.&nbsp;1, we will make the changes discussed in future
filings, commencing with our Definitive Proxy Statement filed on Schedule 14A for our fiscal year ended September&nbsp;27, 2008. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><U>The Audit/Compensation
Committee, page 5 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">1.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Please state whether the audit/compensation committee has a separate charter regarding its functions as a compensation committee. See Item&nbsp;407(e)(2) of Regulation S-K.
</FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2"><U>Response</U>: There is not a separate Audit/Compensation Committee charter regarding its functions as a compensation
committee. We will revise the paragraph on page 5 to read as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT FACE="Times New Roman" SIZE="2">The Committee does not have a separate Compensation Committee
charter. When the committee is acting as the Compensation Committee, the Board has empowered the committee to: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="14%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">approve compensation levels and increases in compensation of each executive officer and of other employees of the Company whose annual base salary is in excess of
$100,000; and </FONT></P></TD></TR></TABLE>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">February&nbsp;26, 2008 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2"> Page
 2
 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>

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<TD WIDTH="14%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">approve all incentive payments to executive officers and any incentive payments in excess of $25,000, paid in cash or property, in any calendar year to any other
employee. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><U>Meeting of the Board of Directors and Committees, page 6 </U></FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">2.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">We note your disclosure that the chart on this page reflects &#147;the cash and certain other compensation paid by the Company to its outside directors.&#148; Your disclosure should
separately disclose and identify fees earned or paid in cash from other items of compensation and also provide for a total compensation column. See Item&nbsp;402(k) of Regulation S-K. </FONT></TD></TR></TABLE> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2"><U>Response</U>: Our only form of director compensation is cash payments. We will clarify this in the paragraph immediately preceding the table, as
follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT FACE="Times New Roman" SIZE="2">The following director compensation table sets forth, for the fiscal year ended September&nbsp;29, 2007, the cash compensation
paid by the Company to its outside directors. There were no other items of compensation paid to outside directors for the fiscal year ended September&nbsp;29, 2007. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><U>Base Salary, page 10 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">3.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">You disclose that base salaries for executive officers are &#147;determined using comparisons with industry competitors and other relevant factors including the seniority of the
individual, the functional role of the position, the level of the individual&#146;s responsibility , the ability to replace the individual, etc.&#148; Please fully disclose all the specific items considered in determining base salary. Also it
appears that you may engage in benchmarking in setting this amount. If so, please identify the benchmark and its components, pursuant to Item&nbsp;402(b)(2)(xiv) of Regulation S-K. If you do not engage in benchmarking, explain how you determine what
constitutes &#147;comparisons with industry competitors.&#148; </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2"><U>Response</U>: There are no specific benchmarks or industry
data that is consulted regularly to determine base salary. Industry data such as information available for the Company&#146;s publicly traded peers or information available in trade publications is consulted on an as-needed basis in the subjective
setting of base salaries by the Chief Executive Officer. We will clarify our disclosure as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT FACE="Times New Roman" SIZE="2">Base Salary.<B><I> </I></B>Base salary
is used to attract and retain the Executive Officers and is determined using publicly available comparisons with industry competitors and other relevant factors including the seniority of the individual, the functional role of the position, the
level of the individual&#146;s responsibility, the ability to replace the individual, etc. Information consulted is used subjectively without benchmarking in the determination of base salaries. The base salaries paid to the Executive Officers during
fiscal year 2007 are shown in the Summary Compensation Table presented in this proxy statement. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">February&nbsp;26, 2008 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2"> Page
 3
 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><U>Cash Incentive Bonus Award, page 10 </U></FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">4.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">In your summary compensation table you state that Mr.&nbsp;Gaither received compensation under a non-equity incentive plan. Please expand your disclosure here to discuss in more
detail your non-equity incentive plan. In this regard, we also note that you disclose that Mr.&nbsp;Gaither&#146;s incentive bonus is based on a percentage of Milkco&#146;s earnings before taxes and payment of bonuses. We further note that you have
not provided a quantitative discussion in terms of the necessary target to be achieved by Mr.&nbsp;Gaither to earn a cash incentive bonus. Please disclose or, to the extent that you believe disclosure of this target is not required because it would
result in competitive harm, provide us on a supplemental basis a detailed explanation under Instruction 4 to Item&nbsp;402(b) of Regulation S-K for this conclusion. If disclosure of the performance-related factor would cause competitive harm, please
discuss how difficult it will be for the executive or how likely it will be for you to achieve the target levels or other factors. Please also discuss any discretion that may be exercised in granting such awards absent attainment of the stated
performance goal. Please see Instruction 4 to Item&nbsp;402(b) of Regulation S-K. </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2"><U>Response </U>: Please refer to footnote
(3)&nbsp;of the summary compensation table where we disclose that Mr.&nbsp;Gaither receives a bonus equal to a percentage of Milkco&#146;s earnings before taxes and payment of bonuses, up to a maximum of $49,500 per year. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">The percentage used for the initial bonus calculation before the $49,500 maximum is [***]%. Before consideration of the $49,500 maximum, [***]% of
Milkco&#146;s earnings before taxes and payment of bonuses for the fiscal year ended September&nbsp;29, 2007 totaled approximately $[***]. We believe disclosure of this additional information would result in competitive harm. Based on Milkco&#146;s
financial performance over the past three fiscal years, Mr.&nbsp;Gaither has been paid the maximum bonus allowed under the plan. The Company expects Mr.&nbsp;Gaither will continue to receive the maximum bonus allowed under the plan in future years,
so we will revise the footnote disclosure as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT FACE="Times New Roman" SIZE="2">Mr.&nbsp;Gaither receives a bonus equal to a percentage of Milkco&#146;s earnings
before taxes and payment of bonuses, up to a maximum of $49,500 per year. Based on Milkco&#146;s expected financial performance, the Company anticipates Mr.&nbsp;Gaither will continue to receive the maximum bonus. </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">5.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">With respect to the non-equity incentive plan compensation, please include the disclosure required by Item&nbsp;402(d) of Regulation S-K. </FONT></TD></TR></TABLE> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2"><U>Response</U>: Based on the response to comment 4 above, all of the information required by Item&nbsp;402(d) is either being disclosed or would result
in competitive harm. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="line-height:8px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000;width:10%">&nbsp;</P>
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<TD WIDTH="6%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">[***]</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">These portions of this response have been omitted and filed separately with the Commission pursuant to a request for confidential treatment. </FONT></TD></TR></TABLE>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">February&nbsp;26, 2008 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2"> Page
 4
 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><U>Certain Relationships and Related Party Transactions, page 15 </U></FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">6.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Please provide the disclosure required by Item&nbsp;404(b) of Regulation S-K. </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT
FACE="Times New Roman" SIZE="2"><U>Response</U>: We will revise our disclosure as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT FACE="Times New Roman" SIZE="2">Mr.&nbsp;Pollard, a director of the Company,
was, until his retirement in March 2006, an attorney with the law firm of McGuireWoods, LLP which, from time to time, handles matters for the Company. These matters occur in the normal course of business and do not require approval of ratification
by the Board of Directors. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P
STYLE="margin-top:12px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">The Company acknowledges that: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(1) the
Company is responsible for the adequacy and accuracy of the disclosure in its filings with the Commission; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(2) the staff comments or
changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to any filing; and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">(3) the Company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">If you have any questions or comments regarding the foregoing responses, please contact the undersigned at 828-669-2941, Ext. 223. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Very truly yours,</FONT></TD></TR>
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<TD HEIGHT="8"></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Ingles Markets, Incorporated</FONT></TD></TR>
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<TD HEIGHT="16"></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Ronald B. Freeman</FONT></P></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Ronald B. Freeman</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Chief Financial Officer</FONT></TD></TR>
</TABLE></DIV> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Attachment </FONT></P>
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