An activist investor has demanded a shake-up at Bulmers cider maker C&C that could see it sold.

In a letter to the board, hedge fund Engine Capital urged it to launch a strategic review and find a potential buyer, with private equity seen as an option.

It said the drinks group – which also owns Scottish beer Tennent’s, Tipperary Pure Irish Water and Finches – has been a "perennial underperformer".

Shares have halved in value in the last five years. Engine Capital, which owns just under 5% of the manufacturer, took a swipe at "succession missteps, strategic mistakes, execution blunders, and an inability to return to its higher historical earnings profile" for stifling its valuation potential.

In response, C&C said it "welcomes feedback from all shareholders and has a clear focus on creating shareholder value".

CEO Patrick McMahon stepped down earlier this month after accounting errors were found within the company.

(Pic: Mark Stedman/Photocall Ireland)