FORMER director of Hereford United Michael Hancocks plotted to contaminate Bulmers because the cider giant threatened to crush his rival company, Bristol Crown Court heard yesterday.

Hancocks, aged 63, of Hafod Road, Hereford, became antagonised by Bulmers when it continued its duty dilution practice which threatened to out-price rival Midlands-based Aston Manor Brewery, Anthony Barker QC, defending, told the court.

He claimed it was Bulmers' practices, which were contrary to guidelines from the National Association of Cider Manufacturers, which led a previously honourable man to attempt to contaminate Bulmers cider with yeast.

Last week Hancocks pleaded guilty to conspiracy to defraud Bulmers by attempting to introduce a yeast-based substance into its cider.

He claimed he had only wanted to achieve a degree of nuisance value.

For the prosecution, Victor Temple QC said Hancocks' actions were designed to cause a product recall.

"In Hancocks' mind Bulmers should have been showing signs of contamination and there should have been a product recall," he said.

He detailed three attempts by Hancocks to contaminate cider in 2000 and 2001 with yeast.

Mr Temple said he hired Richard Gay, aged 51, of Weston Lane, Tyseley, Birmingham, a chemist who had worked at Aston Manor Brewery, to produce the contaminants on each occasion.

Gay has pleaded guilty to being in possession of material to be used for making it appear that cider produced by HP Bulmer Ltd had been interfered with between August 31, 2001 and April 5, 2002.

The court heard how Gay's bungled chemistry produced a 'less effective' yeast.

A third man involved in the plot Paul Harris, aged 42, of Kings Caple, admitted to one count of conspiracy last year to contaminate the cider.

Mr Temple said Harris, who had been in a relationship with Hancocks' daughter, Susan Vaughan, at the time of the conspiracy and had also worked for Aston Manor Brewery was asked by Hancocks to pay a Bulmers' employee to introduce the yeast at the factory's production line in Hereford. Susan Vaughan was not involved in the conspiracy.

Mr Temple said employee Russell Jordan was assigned the task.

"But Harris' judgement was wrong. When first approached Jordan was willing but then realised the full implications. He had second thoughts and on November 19, 2001, he informed the management of Bulmers what he had been asked to do and the police were informed and surveillance maintained," said Mr Temple.

He said Mr Jordan was asked to pour yeast into a cap hopper on the production line.

The court heard the contaminant could have resulted in causing nausea and diarrhoea if consumed by the public.

Mr Barker claimed the yeast could not have survived for long enough in the bottles and discovery would have caused no more than some disruption to the factory.

"Whilst the defendant accepts he's guilty of conspiracy on the other hand the court can conclude he was in such a state that his real expectation as to what would happen if he sat down and thought about it would be very little," said Mr Barker.

He said that between 2000 and 2001 Bulmers were selling cider at low prices rival companies could not cope with, securing 60 per cent of the market through duty dilution (a tax avoidance practice legal at the time).

"The National Association of Cider Manufacturers, led by Bulmers, said this should not be done. Bulmers were telling others not to do this, but were doing this themselves in a major way.

"It gave potential to make huge amounts of cider at lower cost," said Mr Barker. He said what went on was never formally admitted or denied. The practice became illegal in August 2001.

"After duty dilution stopped, Bulmers' profits collapsed. Two executives were sacked and one left by mutual consent in January 2003."

He added: "It would be unfair to send him (Hancocks) to prison and leave Bulmers free. They were seeking to crush his business."

Sentencing has been deferred until May 1. A report on the state of Hancocks' health is being sought.