Question-and-Answer Session
Operator
(Operator Instructions). Our first question is coming from Farha Aslam with Stephens Inc. Please state your question.
Farha Aslam - Stephens Inc.
Congratulations on a good quarter.
George Deese
Thank you.
Farha Aslam - Stephens Inc.
George, you talked about promotional activity continuing, but could you just give us some more detail on how the depth of promotions progressed as the quarter went on versus last year?
George Deese
Sure. I'd also like to take just a minute to say from a more of historical viewpoint. Historically when the recessions do come, having been in the business 45 years, I've seen a few. And that's (inaudible) when the recessions come, a lot of times commodities do go down during recession. A lot of times not only bakers, but other food makers will promote their product because they are afraid they are going to lose volume during that recession.
So I think this time is no different. In the next recession you'll probably see the same thing. But in the first quarter, we did see [white] bread being promoted, we did see soft variety bread being promoted and the breakfast category being promoted, different [companies], different times. That pretty well, I did say, I saw a little heavier activity, maybe a little different deeper price cuts, heavier promotions at the end of the second quarter.
As we go into the third quarter, it looks like commodities are certainly leveling out of this period in time, but we need to remember commodities, and even though commodities are down, speaking specifically of wheat, from that 8 to 850 category, we will probably wait when it gets to 8 and 850. It's because most of the time we are not having a recession, the market is booming. The market is booming and then the food industry does not, will not promote as much during those boom times as they do in the tough times. I think that's what we are seeing. As we go through the rest of the year, I would think that we will continue to see price promotions until we see the economy begin to pick up and get stronger.
Farha Aslam - Stephens Inc.
Okay. And in terms of IDC's reentry into California, has that effected your growth in that market at all?
George Deese
I would say not.
Farha Aslam - Stephens Inc.
And so you continue to target sort of 10% of the market over the next three to five years?
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