On-trade vs off-trade
On-trade is any outlet where food and drink are bought to be consumed on the premises, such as pubs, bars, restaurants, cafes and hotels; off-trade is where they are bought to be consumed elsewhere, such as supermarkets, convenience stores, liquor stores and online grocery. The split tells you who decides the range and whether the sales job happens outlet by outlet or with a central buyer. In the US, the same terms are on-premise and off-premise.
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The difference at a glance
| On-trade (on-premise) | Off-trade (off-premise) | |
|---|---|---|
| Where it is consumed | At the outlet | Somewhere else |
| Typical outlets | Pubs, bars, restaurants, cafes, hotels, venues | Supermarkets, convenience, liquor stores, petrol stations, online grocery |
| Who decides the range | The owner, manager or bar team, often outlet by outlet | A category buyer, often for a whole chain |
| What the guest pays | A serve price that includes service | A shelf price per pack |
| How a brand wins | Menu listing, draught tap, back bar, staff recommendation | Shelf space, price, promotion |
| How sales teams work | Many visits to many independent decision makers | Fewer, larger negotiations |
The last two rows explain why the split matters to a field sales team: on-trade growth is won outlet by outlet, so the size and quality of the outlet list decides how much of the market a team can reach.
Who means what by region
| Region | Consumed on the premises | Bought to take away | Watch out for |
|---|---|---|---|
| UK | On-trade | Off-trade | An off-licence is a shop licensed to sell alcohol to take away |
| Ireland | On-trade, the licensed trade | Off-trade, off-licence | Pubs are "the trade" in everyday speech |
| US and Canada | On-premise | Off-premise | Both are licence types in state and provincial law; in IT, on-premise means self-hosted software |
| Continental Europe | HoReCa, horeca (NL, BE), CHR (FR), Gastronomie (DE) | Retail; GMS in France, LEH in Germany | HoReCa counts outlets by type, not by where the drink is drunk |
| Asia Pacific, Latin America | On-premise, HoReCa | Modern trade (chains) and general or traditional trade (small shops) | The off-trade is split in two, and the split matters more than on vs off |
The UK Institute of Alcohol Studies uses on-trade and off-trade; US law and trade press use on-premise and off-premise, rooted in the licence a venue holds under the three-tier system.
Who means what by role
| Role | What the split means to them |
|---|---|
| eCommerce manager | Delivery listings of on-trade venues, usually reported as their own channel |
| Field sales rep | The on-trade is outlets to visit one by one; the off-trade is often a head-office listing |
| Category manager | Off-trade ranges agreed with central buyers; on-trade ranges agreed outlet by outlet |
| Distributor | Different price lists, and in many countries different licences |
| POS-system vendor | Hospitality and retail are separate product lines |
| Market researcher | Two measurement worlds: scan data for the off-trade, outlet census and panels for the on-trade |
Where food delivery and quick commerce fit
Delivery blurs the line, so define it before you report it. A meal ordered from a restaurant on a delivery app is sold by an on-trade outlet but eaten off the premises; most brand teams report it as its own channel rather than force it into either side, and track those listings outlet by outlet (food delivery insights). Quick commerce and dark-store apps sell packs at shelf-style prices for consumption at home, which makes them off-trade. Pubs with an off-sales counter and convenience stores with seating are hybrids: classify them by where most of the volume is consumed and note the exception.
Formula: channel share
On-trade share of volume (%) = volume sold through on-trade outlets / total volume x 100
The same formula works on value. Because a serve in a bar costs several times the same drink from a shop, the on-trade share of value is usually much higher than its share of volume. Always say which one you are quoting.
Worked example
Take a beer brand in one country.
- The brand sells 1,000,000 litres a year. 300,000 litres go through pubs, bars and restaurants. On-trade share of volume = 300,000 / 1,000,000 = 30%.
- On-trade litres sell at an average of 8 per litre to the guest and off-trade litres at 2.5 per litre. On-trade value = 2.4 million; off-trade value = 700,000 x 2.5 = 1.75 million. On-trade share of value = 2.4 / 4.15 = 58%.
- The same brand is 30% of the volume story and 58% of the value story in the on-trade, which is why on-trade sales teams are judged on outlets and serves, not litres alone.
On-trade outlet data by country
On-trade outlet data is one record per pub, bar, restaurant, cafe and hotel, with its channel, menu, delivery listings and who runs it. Because the range is decided outlet by outlet, that record is what an on-trade sales team plans from. For the UK, see the on-trade outlet data by channel and city and UK pub data; for continental Europe, where the same outlets are usually called horeca, see our horeca data provider page and the HoReCa definition.
Frequently asked questions
Is on-trade the same as on-premise?
Yes. On-trade and off-trade are the usual UK and European terms; on-premise and off-premise are the usual US terms. They describe the same split.
Is a hotel on-trade?
Its bars, restaurants and room service are on-trade, because guests consume on the premises. A hotel shop selling packs to take away is off-trade.
Is food delivery on-trade or off-trade?
Neither cleanly. Restaurant delivery is sold by an on-trade outlet and consumed elsewhere, so most teams treat it as a separate channel. Quick commerce apps that sell packs from dark stores are off-trade.
Why do field sales teams focus on the on-trade?
Because ranging decisions are made outlet by outlet by independent owners and managers, so they need a visit, a relationship and a reason. That is work a central buyer meeting cannot replace.
Why do people say on premise?
On-premise is the established US industry term, taken from liquor licensing, even though "on premises" is the grammatical form. Both mean the drink is consumed at the place that sold it.
What is an example of off-premise?
A bottle of wine bought in a supermarket, liquor store or convenience store to drink at home is an off-premise sale.