Drinks trade glossary

ABV (alcohol by volume): The percentage of a drink's volume that is alcohol. It sets which UK duty band a product falls into.
LPA (litres of pure alcohol): Litres of product × ABV. A 70cl bottle at 40% holds 0.28 LPA. UK duty is charged per LPA.
Alcohol duty: The excise tax HMRC charges on alcohol, based on category and strength. See the current rates.
Draught relief: Lower duty rates for drinks under 8.5% ABV sold in containers of 20 litres or more for dispense, such as kegs.
Small Producer Relief: Reduced duty for qualifying small producers of drinks under 8.5% ABV. The discount depends on how much they produce.
Bonded warehouse (bond): An HMRC-approved warehouse where alcohol is stored with duty suspended. Duty becomes due when stock leaves bond for sale in the UK.
Under bond (UB) / in bond: A price or stock position before duty has been paid.
Duty paid (DP): A price or stock position that includes duty.
Ex-cellar (EXC): The price at the producer's door, before shipping, duty or any UK costs.
Landed cost: The full cost of getting stock into your UK warehouse: product, freight, insurance and import charges.
DPD cost (duty-paid delivered): Landed cost plus duty, storage and delivery to the customer. The real cost floor for pricing.
RHD (receipt, handling and dispatch): The warehouse's charge for booking stock in, handling it and sending it out, separate from storage rent.
RRP: Recommended retail price. What the brand suggests the consumer pays, including VAT.
Margin: Profit as a percentage of the selling price, ex VAT. How UK retailers and wholesalers quote their return.
Mark-up: Profit as a percentage of the cost price. A 30% margin is a 42.9% mark-up.
GP (gross profit): In the on-trade, GP% is the bar's margin on its ex-VAT drinks sales. Bars commonly target 70% or more on spirits.
Retro (retrospective discount): A discount paid after the sale, usually as a credit or free stock, often tied to volume or a deal period.
1 on 6: A free-stock deal: one free bottle for every six bought. Worth 14.3% off every bottle received.
NSV (net sales value): Revenue after discounts, retros and promotional spend. Some companies also take duty out. Check which definition your business uses.
9-litre case (9LC): The industry's standard volume measure: 12 × 75cl. Used to compare brands and markets on a like-for-like basis.
Pricing ladder: The chain of prices from brand owner to consumer, with each layer's margin added in turn.
Price-back: Working from the consumer price back to ex-cellar to check a brand can afford its target price point.