The chief executive of C&C Group, the Irish drinks group that makes Magners cider, has fallen on his sword after the latest in a series of profit warnings over the past two years.

Maurice Pratt, who had been credited with rejuvenating cider in Britain by marketing Magners as an over-ice drink, said today that he had decided to step down after the “repositioning strategy” he had sought to execute at C&C had fallen short of expectations.

Mr Pratt, who led the flotation of C&C in May 2004, said he believed his decision would “best serve the interests of shareholders and employees”. He has agreed to remain in place until a successor has been appointed.

Soaring sales during the hot summer of 2006 saw the company grab second place in the cider market behind Bulmers, owned by Scottish & Newastle (S&N). But Magners has since gone sharply backwards because of a combination of dire weather, the consumer downturn and S&N’s relaunch of Bulmers Original as an over-ice cider.

Mr Pratt said: "The past two years have been very challenging for C&C Group and, despite our best efforts, we have not achieved our ambitions for the business. As chief executive I have to be accountable and take responsibility for business performance.

“The company has to take important strategic choices and I have therefore decided it is time to stand aside and allow a new CEO to bring fresh thinking and impetus to the business.”

Tony O’Brien, the C&C chairman, thanked him for his contribution, which had been “marked by both successes and challenges”.

C&C today reported a 12 per cent decline in cider volumes in the six months to the end of August and warned investors that, if current trends in the Irish and British markets continued, it expected to suffer a “material drop in operating profit in the second half”.

The group, which has been the subject of bid speculation, said a sub-committee of the board had been set up to review its strategy in Britain as it believed the poor performance could not be wholly attributed to the poor weather and and the economy.

In the first half, its market share of the bottled cider market in pubs and clubs in Britain fell from 69 per cent to 52 per cent. Its share of the off-trade fell from 8.3 per cent to 7.5 per cent.

The decline in cider sales was mitigated by a cost reduction programme and an 11 per cent rise in volumes from Tullamore Dew, its Irish whiskey brand.

As a result, continuing operating profits, adjusted for the sale of its soft drinks arm, were down by just 0.7 per cent at €66.5 million (£52.8 million), from revenues down 13.2 per cent at €302.4 million.

There is an interim dividend of €0.06 per share, but the group warned investors that the future level would be rebased in line with reduced earnings. It said it expected the annual dividend to be €0.12, down from €0.27 last year.

Shares of C&C fell by €0.13 to €5.52, down almost 9 per cent, in early trading.

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