A supplier calls your restaurant an on-trade account. A pub listing describes a business as wet-led and free of tie. Another drinks company introduces itself as a distributor. These expressions belong to the same industry, but they describe different things: where drinks are consumed, how they reach a venue, or how a pub operates.
Knowing which question a term answers makes conversations easier. This guide puts the main drinks-trade and hospitality terms in context, with a route to a fuller explanation when you need one.
| If you want to understand… | Start with… | What the terms describe |
|---|---|---|
| Where customers consume their drinks | On-trade and off-trade | The sales channel |
| A broad hospitality sector label | HORECA | Types of hospitality business |
| Who supplies a venue | Wholesaler, distributor and supplier | Commercial roles |
| How a venue buys its drinks | Delivered wholesale, cash-and-carry and retail | Purchasing models |
| A pub’s ownership or buying arrangements | Free house, tied pub and pubco | Different aspects of the pub business |
| Whether a pub centres on drinks or food | Wet-led and food-led | Its principal offer and sales mix |
On-trade and off-trade: where the drink is consumed
On-trade means drinks bought for consumption on the premises. A pint served in a pub, a soft drink with a restaurant meal and a drink ordered at a hotel bar are familiar examples.
Off-trade means drinks bought for consumption elsewhere, such as a bottle purchased from an off-licence or supermarket to take home. The distinction also applies to non-alcoholic drinks: it is about the consumption channel, rather than whether the product contains alcohol. The Competition Commission used these definitions in its soft-drinks market report.
One business can have both kinds of sale. A hypothetical pub might serve a drink at the bar and separately sell a sealed bottle for customers to take away. These commercial descriptions do not establish what alcohol sales the business is legally permitted to make.
For more examples, read On-Trade vs Off-Trade: What Is the Difference?
HORECA: an umbrella term for hospitality
HORECA commonly brings together hotels, restaurants and cafés. You may also see it expanded as hotels, restaurants and catering. Both usages exist: HOTREC uses the café formulation, while the European Commission’s sectoral social-dialogue material uses catering.
In a supplier’s brochure, the term usually helps identify the broad hospitality audience being discussed. Its precise coverage depends on that context. It does not tell you whether a pub owns its premises, buys under a tie or earns more from food than drinks. Those are separate questions.
Wholesalers, distributors and hospitality suppliers
A drinks wholesaler generally sells drinks to business customers. A distributor helps bring products to market and into supply channels; the same company can also sell wholesale. Hospitality drinks supplier is a broader description of a business supplying venues.
These labels overlap. They do not create a universal sequence that every bottle must follow. A drink might pass from a producer through an importer and wholesaler before reaching a venue, while another product might arrive through a shorter route. A company’s role can also differ between products.
Champers is an example of a drinks wholesaler. Understanding that role helps place a supplier within the wider hospitality supply chain: the businesses and supply relationships connecting production with the venue and its customer.
The word independent commonly describes a wholesaler’s ownership or commercial position. It does not, by itself, prove anything about an individual product’s authenticity, the price a venue will pay or the absence of supply agreements.
Read What Is a Drinks Wholesaler? Suppliers, Distributors and the Hospitality Supply Chain Explained for the fuller picture.
Cash-and-carry, delivered wholesale and retail
A cash-and-carry is commonly a wholesale business where customers collect their purchases. It can also offer delivery, so cash-and-carry and wholesale are not opposing categories. Booker’s account information, for example, describes collection and delivery options.
Delivered wholesale describes a supply arrangement involving delivery to the business. Retail generally describes sales to the final consumer. These terms answer two different questions: who the sale serves, and how the goods reach the buyer.
For a venue, pack sizes, eligibility, ordering arrangements and delivery charges depend on the provider. No label alone tells you which route will cost least or suit a particular order.
Free house, tied pub and pubco
A free house broadly signals freedom from a brewery tie. It does not establish who owns the building or prove that every purchasing, finance or stocking obligation is absent.
A tied pub has an arrangement requiring specified purchases through a particular supplier or landlord. The agreement determines what the tie covers. A pubco is a pub-owning or operating business; the label alone does not establish an individual pub’s buying restrictions.
These distinctions matter when discussing supply. A pub’s actual agreement determines where external purchasing is possible. In England and Wales, the statutory Pubs Code applies to qualifying tied relationships, rather than every pub. Other jurisdictions have their own arrangements.
Read Free House, Tied Pub and Pubco: What Do These Terms Mean? for the distinctions and legal context.
Wet-led, food-led and dry-led
A wet-led pub centres on drinks, although it may serve food. A food-led pub places food at the centre of its offer and can still have substantial drinks sales.
In common pub-trade usage, wet refers to drinks and dry often refers to food. Dry revenue can have a broader meaning in some contexts, so “food-led” is clearer when food is specifically intended. A dry-led pub is not necessarily alcohol-free, and non-alcoholic drinks remain drinks sales.
These are descriptive commercial terms, without one universally binding turnover threshold. They help explain the character of a business, but cannot replace a closer look at its actual offer.
Read Wet-Led vs Food-Led Pubs: What Does Dry-Led Mean?
Frequently asked questions
HORECA groups hospitality businesses. On-trade describes drinks bought for consumption on the premises. They often appear together, but answer different questions.
Yes. Cash-and-carry commonly describes a wholesale collection model. Some operators also offer delivery.
No. It broadly concerns freedom from a brewery tie. Ownership, tenancy and other contractual commitments need separate consideration.
No. Wet-led describes a focus on drinks. The pub can also sell food, and its drinks sales can include non-alcoholic products.
No. Commercial terms describe channels, suppliers or business models. A venue’s legal permissions depend on the applicable licensing framework and its own authorisations.
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