Question-and-Answer Session
Operator
(Operator instructions). Our first question today comes from the line of Heather Jones with BB&T Capital Markets. Please proceed with your question.
Brad – BB&T Capital Markets
Hi, guys, it's Brad [ph] speaking on behalf of Heather.
Jones Turner
Hi Brad.
Steve Kinsey
Hi, Brad.
George Deese
Hi, Brad.
Brad – BB&T Capital Markets
Hi, congratulations once again on a great job.
Steve Kinsey
Thank you.
Brad – BB&T Capital Markets
My first question just touching on what you were saying about your sales growth for fiscal year '09, removing acquisitions, and then taking out expected pricing, you're seeing flattish to up slightly or up volumes, and I'm just curious, so much being said about global slowdown, impacts on volume, if you would just walk us through your expectations, a large portion of your expected volumes depend on DSD expansions, depend on hanging in there existing markets, how should we think about your volume expectations?
George Deese
Well, I think Steve reported 1% to 2% increase in volume projected for the year I believe is what we're looking at. We do know the marketplace has been affected by the economic slowdown, I don't think any of us know exactly where that is going. I think we – I've said many times, in good times the baking business is good and I'd say in bad times the baking business can be good. Because I think people do go back to the core of living, they go back to basics and certainly bread is a basic that has been around since creation. And even though you can see changes in shopping patterns, you can see changes from super premium to soft variety, you can see some change in some white bread to private label. Even though we have not seen huge changes in any of that at this point it can happen. But we remain confident that with our execution and plan that we have for the year, we continue to see our brands grow. We continue to execute well in the marketplace. And we still feel comfortable with that 1% to 2% increase. But also, looking back at overall thought pattern here. We said long-term we expect 5% to 8% growth on sales. And that's made up of price and mix, volume. So we really focus this year on that 5%, 8% plus acquisitions on top of that. And that's how we arrived at our guidance and we're very confident with the guidance at this point.
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