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If you work in the beverage industry, you've probably heard the terms on-trade and off-trade. But what do they really mean? And why do they matter for your business growth?
The key difference between on-trade and off-trade is that on-trade refers to beverages consumed where they are bought (like bars and restaurants), while off-trade refers to drinks purchased for consumption elsewhere (like supermarkets and online stores).
But that’s just the surface – to succeed, you need a deeper understanding.
In this guide, we’ll break down what on-trade and off-trade really mean, explore their key differences, and explain how Bemakers can help you succeed in both.
At Bemakers, we help beverage brands — whether established or emerging — navigate these essential sales channels across Europe. Whether you're optimizing your current operations or expanding into new markets, we provide the infrastructure and expertise to help you scale effectively while staying in control of your brand, pricing, and customer relationships.
On-trade meaning: What is the on-trade experience?
The on-trade (sometimes called the on-premise channel) refers to sales where alcoholic (and non-alcoholic) drinks are consumed on the premises where they are bought. This includes:
- Bars
- Restaurants
- Hotels
- Clubs
- Cafés
The on-trade experience is all about atmosphere, service, and social interaction. For beverage brands, on-trade sales often provide visibility, brand prestige, and the chance to shape customer perceptions through bartenders, sommeliers, and venue recommendations.
There’s a saying in the industry that “brands are built in the on-trade.” While that may not be universally true, there’s no doubt that the on-trade is a powerful platform for influencing brand perception and driving trial — making it an important part of any well-rounded channel mix.
Off-trade meaning: What is the off-trade channel?
The off-trade (or off-premise channel) refers to sales where drinks are purchased for off-site consumption. Think:
- Supermarkets
- Liquor stores
- Bottle shops
- Online retail (D2C)
In the off-trade, success depends on packaging appeal, shelf visibility, price positioning, and customer loyalty. But beyond the shelf, real success is often built on in-market presence — developing relationships with store owners, understanding local consumer behavior, and staying close to the market. The combination of strategic positioning and strong local connections is key to long-term impact in the off-trade channel.
On-trade vs. off-trade: What’s the difference?
When comparing on-trade vs. off-trade, here’s what stands out:
How to access on-trade and off-trade customers
Breaking into on-trade and off-trade channels isn’t just about knocking on doors. It requires:
- Understanding local regulations – Each European market has its own unique legal framework. What works in one country might be prohibited in another. Knowing the exact licensing, labeling, age verification, and reporting requirements is essential to operating legally and efficiently.
- Managing logistics and warehousing – Products need to be available where and when they're needed. Many venues expect fast, specific deliveries (e.g. to a certain door, at a certain time), and if restocking takes days, you lose momentum — and potentially the customer. Speed, reliability, and local readiness are essential.
- Building trade relationships – Success in both channels often comes down to trust. From bar managers to retail buyers, decision-makers want dependable partners. Being visible, responsive, and easy to work with makes a significant difference in getting your product listed — and reordered.
- Navigating compliance and tax structures – Excise duties, VAT registration, bottle deposit schemes — these vary not only by country, but also by product type. Missteps can delay shipments or incur fines. A solid compliance setup ensures smooth operations and protects your margins. For European brands, this is especially challenging across borders, where every market has unique rules and buyer expectations.
- Building brand – Especially in on-trade, the story behind your beverage can be just as important as the taste. Bartenders and sommeliers often serve as brand advocates, introducing your product in a setting where customers are open to discovery. This is where the industry phrase “liquid to lips” becomes critical — getting people to actually taste your product is often what drives preference and loyalty. In off-trade, packaging, pricing, and positioning do the talking. Success is about consistent, compelling brand presence across every touchpoint.
How to succeed in on-trade and off-trade with Bemakers
Bemakers provides a distribution platform built for beverage brands that want to scale across Europe with transparency and control - and go direct to market.
✅ We handle the regulatory complexity across multiple European markets (and growing). (link to market page)
✅ We connect you to both on-trade and off-trade customers through our B2B distribution platform. Learn more here.
✅ We provide flexible infrastructure so you stay in charge of your pricing, brand identity, and customer relationships.
✅ We help you expand faster by giving you access to warehouses, logistics, and regulatory know-how without the traditional distributor middlemen.
On-trade or off-trade – it all comes down to your distribution strategy
Understanding on-trade and off-trade is key to crafting a smart and effective beverage distribution strategy. With Bemakers, you get the tools and support to thrive in both channels, across multiple European markets, while staying in control of your brand’s future.
Ready to explore how Bemakers can help you tap into on-trade and off-trade opportunities?
