ANALYSIS:AFTER A disappointing, but not entirely unexpected set of results, Maurice Pratt and the CC management team are tinkering with their strategy rather than planning wholesale changes, writes John Collins.

Through a partnership with Coors, Magners will be available on draught in British pubs from next week, a move which management feels will help reduce the seasonality of its bottled product. A campaign marketing Magners cider as an "over ice" product has been extremely successful for CC but has contributed to the view that it is a summer drink.

CC has agreed a bulk price with Coors, which then kegs and distributes the cider. This means that the manufacturer doesn't have direct control over the price.

Despite this, Magners draught is being positioned as a premium product which will sell for 30-50p more than other ciders. It's a risky strategy, particularly as Pratt admits the company is attempting to create a new drinks category of "premium cider". On the upside, he believes that drinkers of bottled drinks "are fundamentally not draught drinkers" and so the launch is effectively the entrance to a new market.

The happy coincidence of the football World Cup and one of the best summers for many years in 2006 helped Magners capture 3 per cent of the on-trade market in Britain. With the introduction of plastic "long-neck" bottles it is also hoping to gain sales at music festivals such as Glastonbury and other events where glass bottles are banned.

CC initially blindsided larger competitors but Scottish Newcastle has come back with competing cider varieties under the Strongbow name and other brands. Pratt said the firm had factored in a "reasonable summer" when providing guidance for the full year. CC has also beefed up its management team in Britain with the appointment of John Holberry, formerly of Coors, as managing director of Magners Britain.

In a note to clients, NCB analysts said they "expect CC to reverse its recent slide in cider market share" in Britain and expect "solid progress" in Ireland.

CC has been testing Magners in Munich and Barcelona, where it says consumer interest has been strong. The challenge however is in securing distribution and Pratt described Europe as a "slow-burn opportunity".

Investors should expect a gradual uplift during the year rather than a sudden turnaround, according to Pratt.

The question is whether shareholders who bought in the heady days of summer 2006 will have the patience to hang on, not withstanding the generous dividend payment.