They said C&C's woes may have more to do with competition and strategy issues than rain, particularly as the company had alienated itself from the country's huge pub chains and supermarkets over the past year. In recent months, Magners has been reported to have been replaced or have lost exclusive supply deals with British pub groups Mitchells & Butlers, Young's and Punch Taverns.

"The big pub groups in the UK are very powerful and generally set terms for the drinks suppliers rather than the other way around, " said an established British market commentator.

"When Magners came along initially, it struck a chord with consumers and the pubs felt they had to stock it. But on the back of this, C&C took the view they could sell at high prices and didn't endear themselves with the powers that be."

He said that this had made it easier for Scottish & Newcastle, which produces its own cider for the British market called Bulmers, to muscle in and undercut Magners in pubs.

A market research analyst indicated that C&C was unwilling to discount its products for retailers and had taken the attitude that Magners was a "must stock", but would be forced to change its strategy as a number of competitors . . . including S&N . . . were "starting to bite its ass".

Last week, C&C announced its second profit warning in weeks . . .sending its shares plummeting 27% in one day . . . stating that poor weather was the main reason for its underperformance but acknowledging that increased competition in Britain was also an issue.

Although July was a wash-out for all producers due to widespread flooding in Britain, the cider market is still growing, according to a spokesman for the British National Association of Cider Growers. A trading statement issued early last month by S&N came to the same conclusion.

Brendan McGuinness, the managing director of C&C's alcohol division, said that the company had no plans to change its strategy in Britain. "The point is that in the summer, you should experience a significant upturn in the premium cider sector, which hasn't happened this year".