Daub on Esme in the pub (7)
I believe the answer is:
besmear
'daub' is the definition.
(thesaurus)
'esme in the pub' is the wordplay.
'in the' is an insertion indicator.
'pub' becomes 'bar' (both are drinking establishments).
'esme' going into 'bar' is 'BESMEAR'.
'on' is the link.
(Other definitions for besmear that I've seen before include "Sully" , "Cover with (something)" , "Bedaub; pollute" .)