Observations

I sat down with Larry McGinn, President of IMI, to look back at this past year and discuss what may lie ahead in 2023. Larry and I go way back with the company. Today he manages the day-to-day operations, working closely with our Account Management Team and hospitality clients.

With the on-premise in the US returning to almost 2019 volumes, a lot has and continues to change:

• There are 18% fewer on-premise licenses following the pandemic.
• Those that are open have shifted their mindset surrounding operations. These changes include shorter hours, smaller staffs, increased focus on to-go, higher prices, less menu choices (food and beverage). It is imperative that our beverage programs and features are in sync with our clients’ operations.
• Consumers are looking for convenience, and there is a blurring of sales outlets. There are retail operations within hospitality and hospitality operations in retail stores. IMI’s clients are responding with our “HnR” and “RnH” campaigns to capture beverage sales wherever the customer goes.
• The guest’s drinking habits are changing. They are drinking earlier and wrapping it up by evening, drinking less but better, more experimental, curious to learn and experience, thus losing category or brand loyalty. Menus must change to appeal to these new behaviors.
• Product mix across the industry is changing as guests are bombarded with spirits, wine and beer based RTDs, wine in cans, and pre-mixed bottle/canned cocktails. It is now more important than ever for IMI to help our clients make the right buying decisions that fit their guest demographics.