THERE are no fears for the soft drinks market over at Joseph Dunn Group. As one of the oldest companies in Glasgow, it continues to do well. It was established in 1875 by Joseph Dunn, who built the company up from his trade in selling lemonade from a barrel, and he would be proud of his legacy.

Dunn's has recently been moving south of the Border, a decision which is rapidly paying dividends - the company is confident that its share of the market in England is firm.

Sales and marketing director Jim Rowan said: ''Possessing over 65% of the third-of-a-litre plastic bottle soft drinks market puts us in the top position in Scotland. UK-wise we are in joint second place with Villa, while Panda retains the lead.

''Our expansion began in September 1996, and more and more customers are recognising us as a major force within soft drinks.''

The company owes its success south of the Border to its recently developed ''pouch'' drink, an innovative idea in packaging. It is juice in a bag with a straw attached and is easier to carry around than a bottle - an idea first developed by Beechams.

''There are only two pouching- filling systems in Northern Europe and we have one - it did not make sense to confine ourselves to a market of five million people,'' said manufacturing director Gerard Dunn.

Since expanding south, more pouch drinks have been sold in the last six weeks than in the entire previous year.

''The campaign continues down south, but so far our early results have been very positive - we are managing to get into the multiples - Tesco - as well as the independent market,'' said Rowan. ''We also owe our success in England to the fact that products made in Scotland are always very popular there. Scotland has the mark of quality. In this particular market the superiority of Scottish water is very important.''

Since the disposal of Dunn and Moore, the licenced division, two years ago, Joseph Dunn Group is reporting a steady increase in turnover. ''It was a strategic move at the time - our level of margins was proving difficult to sustain with larger companies moving in.

''We wanted a speedy exit and couldn't resist the option to sell to Matthew Clarke Wholesale,'' said Dunn.

The Joseph Dunn Group - which is sponsoring the Britannia Women's 10km Run in Glasgow on Sunday, where it is expected 2000 contestants will receive a pouch - built its factory in Cambuslang in 1996.

But for all its success, Dunn still remains a family business, with five family members on the board.