REVENUE AND sales volumes at Britvic Ireland rose in the third quarter of the fiscal year, but the drinks company warned that this does not signal a sustained recovery in the soft drinks market.

While sales volumes were up 15 per cent in the 12 weeks to July 3rd, the company said that an underlying increase of 5.3 per cent is a more accurate indication of the performance of the Ireland business. This is due to the fact that the half-year ends for Britvic Ireland and the overall Britvic group do not coincide, as well as the timing of Easter in 2010.

The underlying 5.3 per cent rise in volumes compares to an overall increase of 5.8 per cent in the grocery soft-drink market. Underlying revenues at Britivic Ireland rose 1.8 per cent, while average realised price fell 2.5 per cent.

Britivic Ireland owns brands such as Ballygowan and Club and supplies soft drinks to the consumer grocery sector and the licensed on-premise soft drinks market.

The company said yesterday that “structural deflation” is continuing in the Irish food and drinks market. “The Irish soft drinks market remains volatile, with value declining in the ROI grocery soft-drink market by 2.9 per cent in the quarter, and by 11.3 per cent in the ROI Licensed On-Premise market,” the company said.

Figures for Britvic PLC show revenues rose by 16 per cent to £289.5 million (€346.4 million) in the third quarter. Sales for the year rose 8.5 per cent to £794.8 million.

Britvic acquired French soft drinks company, Fruite Enterprises, in May for €237 million. It contributed £23.2 million in revenue to the group in June.

The PLC said it is “confident” of meeting full-year analysts’ estimates.

Last month, Britvic Ireland said it was fully on track to achieve €27 million in cost savings in the Irish business for 2010/11.