-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 DZPGpnQQehcopuVfIRxs68zTV/n/X5aVod/BD65Pfm4OUehouO7mSYaiwMH2qDZ/
 3/yKm0LP8BQo1UZUoMWF5w==

<SEC-DOCUMENT>0001193125-10-069896.txt : 20100611
<SEC-HEADER>0001193125-10-069896.hdr.sgml : 20100611
<ACCEPTANCE-DATETIME>20100329151247
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-10-069896
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20100329

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>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">March&nbsp;29, 2010 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Chris Chase </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Staff Attorney </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Mara Ransom </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Legal Branch Chief </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">H. Christopher Owings </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Assistant Director </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">United States Securities and Exchange Commission </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman"
SIZE="2">Mail Stop 3561 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">100 F Street N.E. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman"
SIZE="2">Washington, DC 20549-7010 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dear Messrs. Chase and Owings and Ms.&nbsp;Ransom: </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">We are in receipt of your letter dated March&nbsp;8, 2010 regarding our Form 10-K for the fiscal year ended September&nbsp;26, 2009 and
Definitive Proxy Statement on Schedule 14A filed December&nbsp;22, 2009. 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. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>General </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">1.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Your website does not appear to include all of the reports that have been filed pursuant to Section&nbsp;16 of the Securities Exchange Act within the last 12 months
with respect to your equity securities, nor is there a hyperlink clearly captioned that leads directly to such reports or a list of them. Please revise your website accordingly. Refer to Securities Exchange Act Section&nbsp;16(a), Securities
Exchange Act Rule 16a-3(k), and Securities Release 33-8230, Section II.B (May 7, 2003). </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: We have
revised the home page of our website <U>www.ingles-markets.com</U> to add a link to the Company&#146;s complete SEC filings (<U>http://www.sec.gov/cgi-bin/browse-edgar?CIK=0000050493&amp;action=getcompany</U>) and a separate link to just the
Section&nbsp;16 ownership reports (<U>http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&amp;CIK=0000050493&amp;type=&amp;dateb=&amp;owner=only&amp;count=40</U>). These links go directly to the SEC EDGAR database. </FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">March 29, 2010 </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"> Page
 2
 </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 STYLE="font-family:Times New Roman" SIZE="2"><U>Form 10-K for the Fiscal Year Ended September&nbsp;26, 2009 </U></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Item&nbsp;1. Business, page 4 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">2.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Please describe your practices regarding warranties and product recalls. If applicable, please identify where your practices differ with respect to your private label
brands. Refer to Item&nbsp;101(c)(1)(vi) of Regulation S-K. </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: In future Forms 10-K, we will add a
paragraph to the end of the <I>Purchasing and Distribution</I> section on page 8 of Item&nbsp;1, Business: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;The Company
receives product recall information from various subscription, government and vendor sources. Upon receipt of recall information, the Company immediately contacts each of its stores to have the recalled product removed from the shelves, and disposes
of the product as instructed. The Company has a policy of refunding and/or replacing any goods returned by customers. The details of this policy are posted inside each of the Company&#146;s stores.&#148; </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Item&nbsp;1A. Risk Factors, page 11 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">3.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Please include a risk factor describing the risks to investors associated with Ingles Markets being a &#147;controlled company&#148; pursuant to the rules of the
NASDAQ. </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: In future Forms 10-K, we will include a &#147;controlled company&#148; risk factor that
reads as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;The Company is a Controlled Company under the NASDAQ Marketplace Rules. As a result, the Company is
exempt from certain of NASDAQ&#146;s corporate governance policies, including the requirements that the majority of Directors be independent (as defined in NASDAQ rules), and that the Company have a nominating committee for Director
candidates.&#148; </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Item&nbsp;5. Market for Registrant&#146;s Common Equity and Related Stockholder Matters, page 17 </U></FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">4.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Please provide the information required by Item&nbsp;701 of Regulation S-K with respect to your private placement of $575 million of senior notes in May 2009. We note
that you filed several Form 8-Ks which refer to the transaction, but it does not appear that you identified the class of persons to whom the securities were sold, or the section of the Securities Act or rule under which the exemption from
registration was claimed. </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: We do not believe that the information required by Item&nbsp;701 of
Regulation S-K is applicable to the senior notes issued in May 2009. The senior notes are straight indebtedness and, therefore, are not equity securities (see Rule 405 under the Securities Act of 1933, as amended). </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Item&nbsp;5(a) of Form 10-K states: &#147;[f]urnish the information required by . . . Item&nbsp;701 of Regulation S-K (17 CFR 229.701) as to
all <B>equity securities of the registrant</B> sold by the registrant during the period covered by the report that were not registered under the Securities Act. . . .&#148; [emphasis supplied] In addition, we note that the disclosure requirements of
Item&nbsp;3.02 of Form 8-K are
</FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">March 29, 2010 </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family: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; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">
similarly limited to unregistered sales of equity securities. Accordingly, we do not believe the requested additional disclosure is required in the Form 10-K. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Item&nbsp;7. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations, page 20 </U></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Fiscal Year Ended September&nbsp;26, 2009 Compared to Fiscal Year Ended September&nbsp;27, 2008, page 23 </U></FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">5.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">We note your statement in the fourth paragraph on page 23 that interest expense increases and $10.2 million of debt extinguishment costs &#147;contributed to&#148; your
net income decreasing to $28.8 million for fiscal year ended September&nbsp;26, 2009, compared to $52.1 million for the fiscal year ended September&nbsp;27, 2008. Considering the materiality of this decrease, please expand your disclosure to discuss
and quantify all material factors that you believe contributed to this decrease. Refer to Securities Act Release No.&nbsp;33-8350 (Dec. 19, 2003). </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: In future Forms 10-K, we will expand this summary paragraph to indentify and quantify the key factors affecting year over year results. For example, with regard to our 2009 fiscal year,
such a paragraph would read as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;Net income for the fiscal year ended September&nbsp;26, 2009 was $28.8 million,
as compared with $52.1 million for the fiscal year ended September&nbsp;27, 2008. As more fully detailed below, the most important factors contributing to this decline were cost increases of $12.2 million in interest expense, $10.2 million in debt
extinguishment costs, $21.9 million in personnel costs and $10.8 million of depreciation.&#148; </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Liquidity and Capital Resources, page 29
</U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">6.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Please revise to discuss how you intend to finance your capital expenditures. </FONT></TD></TR></TABLE> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: In future Forms 10-K, we will add a new paragraph in the Capital Resources discussion to the effect as follows: </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;In general, the Company finances its capital expenditures to the extent possible from cash on hand and cash flow from operations.
Additional financing sources for capital expenditures include borrowings under $XXX million of committed lines of credit, other borrowings that could be collateralized by unencumbered real property and equipment with a net book value of
approximately $XXX million, and the public debt or equity markets. The Company has used each of these to finance past capital expenditures and expects to have them available in the future.&#148; </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">7.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">We note the restrictive covenants attached to your long-term debt and lines of credit agreements. Where you indicate that you are in compliance with these covenants,
please revise to quantify the financial ratios with a view to indicating the level at which you are in compliance. </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman"
SIZE="2"><U>Response</U>: In future Forms 10-K we will revise the applicable language in the Liquidity discussion on pages 30-31 as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">&#147;Long-term debt and lines of credit agreements contain various restrictive covenants requiring, among other things, certain levels of fixed charge coverage, leverage and net worth. These covenants
have the effect of restricting certain types of transactions, including additional
</FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">March 29, 2010 </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family: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; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">
borrowings and the payment of cash dividends in excess of current quarterly per share amounts. As of September XX, 20XX, the Company was in compliance with these covenants by a significant
margin. Under the most restrictive of these covenants, the Company would be able to incur approximately $XXX million of additional borrowings (including borrowings under committed lines of credit) at September XX, 20XX.&#148; </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Item&nbsp;9A. Controls and Procedures, page 35 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">8.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">We note your disclosure states that the &#147;Company&#146;s system of controls and procedures, however well designed and operated, can provide only reasonable, and not
absolute, assurance that the objectives of the system are met.&#148; Please revise your disclosure to state clearly, if true, that your principal executive officer and principal financial officer concluded that your disclosure controls and
procedures are effective at a reasonable assurance level. In the alternative, please remove the reference to the level of assurance of your disclosure controls and procedures. Please refer to Section II.F.4 of Management&#146;s Reports on Internal
Control Over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Reports, SEC Release No.&nbsp;33-8238. </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: In future Forms 10-K, we will revise the last two paragraphs under Item&nbsp;9A Controls and Procedures&#151;Conclusion Regarding Disclosure Controls and Procedures to read as follows:
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Conclusion Regarding Disclosure Controls and Procedures </B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;As required by Rule 13a-15(b) under the Exchange Act, the Company carried out an evaluation, under the supervision and with
participation of its management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures as of September XX, 20XX, the end of the period covered by
this report. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Based on this evaluation, the Company&#146;s Chief Executive Officer and Chief Financial Officer conclude that
the Company&#146;s disclosure controls and procedures were effective at a reasonable assurance level as of September XX, 20XX.&#148; </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman"
SIZE="2"><U>Exhibit 31.1 and 31.2 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">9.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Consistent with prior comment six of our comment letter dated January&nbsp;17, 2008 and your response dated February&nbsp;19, 2008, please ensure that the exact wording
of the certification provided in Item&nbsp;601(b)(31) of Regulation S-K is provided. For example, the term &#147;annual report&#148; should be replaced with &#147;report&#148; in the paragraphs two and three, the word &#147;we&#148; should be
removed from the last sentence of paragraph four, and the parenthetical phrases should be included in paragraphs 4(d) and five. Please confirm that your certifications will use the exact wording of the certification provided in Item&nbsp;601(b)(31)
of Regulation S-K. This comment also applies to your quarterly reports on Form 10-Q. </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: We will
make the requested changes in our future Forms 10-K and 10-Q. </FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">March 29, 2010 </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"> Page
 5
 </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 STYLE="font-family:Times New Roman" SIZE="2"><U>Form 8-K Filed May&nbsp;15, 2009 </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>Exhibit 10.1 Credit Agreement </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">10.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Please file the exhibits and schedules to your Credit Agreement dated as of May&nbsp;12, 2009. Refer to Rule 601(b)(10) of Regulation S-K. Please note that
Item&nbsp;601(b)(2) of Regulation S-K provides a carve-out for schedules or attachments that are not material to an investment decision, but Item&nbsp;601(b)(10) does not include a similar provision. </FONT></TD></TR></TABLE> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: We will include the exhibits and schedules to our Credit Agreement as exhibits with our Form 10-Q for the quarter ended
March&nbsp;27, 2010. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Definitive Proxy Statement on Schedule 14A </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>Executive Compensation and Other Information, page 9 </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Elements of Executive
Compensation, page 10 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">11.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Please discuss the factors the Audit/Compensation Committee considers in determining whether to approve the Executive Officer&#146;s bonuses that are subjectively
determined by Mr.&nbsp;Ingle. Please also revise to briefly discuss what about the prior year&#146;s profitability and the named executive officer&#146;s performance caused Mr.&nbsp;Ingle to arrive at the amounts reflected in your summary
compensation table. </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: In our future proxy statements, we will provide the requested disclosure.
By way of example, with respect to the definitive proxy statement for our 2010 annual meeting, we would have revised the second paragraph under Cash Incentive Bonus Awards to read as follows: </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;Other Executive Officers of the Company received a bonus, the amounts of which were subjectively determined taking into consideration
Company profitability and the Executive Officer&#146;s performance for the fiscal year to which the bonus relates. This subjective determination is made by Mr.&nbsp;Ingle, the President and Chief Operating Officer and/or the Chairman of the Board,
as appropriate, and approved by the Audit/Compensation Committee. The Audit/Compensation Committee also reviews Company profitability, the Executive Officer&#146;s performance and the entire compensation package for each Executive Officer as part of
its approval of bonuses recommended by Mr.&nbsp;Ingle, the President and Chief Operating Officer and/or the Chairman of the Board. The bonus paid to Mr.&nbsp;Gaither, President of the Company&#146;s subsidiary, Milkco, Inc., is based on a percentage
of Milkco&#146;s earnings before taxes and payment of bonuses. Neither Mr.&nbsp;Ingle nor the Audit/Compensation Committee used any specific metrics or studies in arriving in their subjective determinations.&#148; </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">12.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">As it appears that you have determined to compensate your named executive officers exclusively with short-term compensation, please explain why you have determined not
to utilize any long-term compensation. See Item&nbsp;402(b)(1)(v) and 402(b)(2)(i) of Regulation S-K. </FONT></TD></TR></TABLE>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">March 29, 2010 </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"> Page
 6
 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: In our future proxy statements, we will provide the following
explanation: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;While the Company in the past maintained a stock option program to provide long term compensation, that
plan was discontinued and all options granted thereunder have expired. Given the potential year to year volatility in its business, the Company believes that focusing on short term compensation allows the Company to tailor compensation to the
current operating results of the Company. In addition, long term compensation is considered by virtue of the fact that base salaries and cash incentive bonuses take into account each executive&#146;s time of service with the Company and likelihood
that the executive will continue to drive long-term shareholder value. The Company believes that, for its particular circumstances, other forms of compensation could act as disincentives to executives to place the performance of the Company and
shareholder value ahead of personal gain.&#148; </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Security Ownership of Management and Certain Beneficial Owners, page 14 </U></FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">13.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Please revise the footnotes to your beneficial ownership table to clarify whether the shares held by each holder identified in the table includes shares that the holder
has a right to acquire within 60 days. Refer to Exchange Act Rule 13d-3(d). In this regard, we presume that the 11,285,836 shares of Class&nbsp;A common stock held by Mr.&nbsp;Ingle presumes conversion of the 11,057,250 shares of Class B common
stock, however, your disclosure should make that clear. </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: In our future proxy statements, we will
add a sentence to the end of the paragraph immediately preceding the table so the entire paragraph reads as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;The
following table sets forth the number of shares of Class&nbsp;A Common Stock and Class B Common Stock owned beneficially as of September XX, 20XX, by each director and nominee for director, each of the executive officers of the Company named in the
Summary Compensation Table, all directors and executive officers as a group, and each person known by the Company to be a beneficial owner of more than five percent (5%)&nbsp;of either class of the outstanding Common Stock. The table also sets forth
the percentage of each class of Common Stock held by such stockholders. As of September XX, 20XX, there were 12,888,608 shares of Class&nbsp;A Common Stock and 11,623,651 shares of Class B Common Stock outstanding. Except as otherwise indicated,
each beneficial owner has sole voting and investment power with respect to the Common Stock listed. <B>None of the beneficial owners has the right to acquire additional shares of Class&nbsp;A or Class B Common Stock within 60 days of September XX,
20XX</B>.&#148; [emphasis supplied] </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">In our future proxy statements, we will clarify footnote (2)&nbsp;to the Security
Ownership table to more prominently disclose at the beginning of the footnote that Class&nbsp;A shares beneficially owned presume the conversion of all Class B shares beneficially owned. The entire footnote will read as follows: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">(2)</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>The number of Class&nbsp;A shares owned beneficially assumes the conversion of each share of Class B stock beneficially owned plus the current
number of Class&nbsp;A shares beneficially owned.</B> [emphasis supplied] Each share of Class B Common Stock is convertible, at any time at the option of the holder, into one share of Class&nbsp;A Common Stock. If the holder of any shares of Class B
Common Stock transfers the shares to anyone other than
</FONT></P></TD></TR></TABLE>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">March 29, 2010 </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"> Page
 7
 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P><FONT STYLE="font-family:Times New Roman" SIZE="2">
a &#147;qualified transferee&#148; as defined in the Company&#146;s Articles of Incorporation, then each share of Class B Common Stock will automatically convert into a share of Class&nbsp;A
Common Stock. Accordingly, for each holder of Class B Common Stock the number of shares and percentage of Class&nbsp;A Common Stock set forth in this table also reflect the Class&nbsp;A Common Stock into which such stockholder&#146;s shares of Class
B Common Stock are convertible. However, these converted shares are not used to calculate such percentages for any other stockholder in this table. The number of shares and percentage of Class&nbsp;A Common Stock held by all directors and executive
officers as a group also reflects the conversion into Class&nbsp;A Common Stock of each share of Class B Common Stock held by each director and executive officer. Because the Class B Common Stock converts into Class&nbsp;A Common Stock on a one to
one basis, the number of shares of Class B Common Stock noted in the table above also represents the number of shares of Class&nbsp;A Common Stock each holder would beneficially own upon conversion of the Class B Common Stock beneficially owned by
them. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Transactions with Related Persons, page 16 </U></FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">14.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">We note your disclosure on page 16 that directors and officers are required to provide advanced notification to the Executive or Audit/Compensation Committees of any
potential related person transactions. Please describe your Committee&#146;s policies and procedures for the review, approval, or ratification of any of these transactions. See Item&nbsp;404(b) of Regulation S-K. In this regard, we note your
April&nbsp;30, 2008 response to our comment one of our March&nbsp;26, 2008 letter in which you addressed the manner in which you monitor these transactions. However, your response and your disclosure do not discuss your policies and procedures for
the review, approval or ratification of these transactions. </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: In future proxy statements, we will
add a new paragraph following the first paragraph in the section TRANSACTIONS WITH RELATED PERSONS, as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;Upon
advance notification of a possible transaction with a related person, the Executive Committee or Audit/Compensation Committee will review the transaction for propriety, evidence of arm&#146;s-length terms, and compliance with internal ethics
standards and will contact outside counsel to determine compliance with applicable law and regulation. If a transaction is approved by the Executive Committee or Audit/Compensation Committee, then the transaction is submitted to the full Board of
Directors for ratification of the decision prior to execution of the transaction.&#148; </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; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Unless otherwise
noted above, we will make the changes discussed in future Form 10-K and Definitive Proxy Statement filings. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company
acknowledges that: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family: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 STYLE="font-family: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='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">March 29, 2010 </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"> Page
 8
 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family: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 STYLE="font-family: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">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="100%"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Very truly yours,</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Ingles Markets, Incorporated</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ Ronald B. Freeman</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Ronald B. Freeman</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Chief Financial Officer</FONT></TD></TR></TABLE></DIV>
</BODY></HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
