"It's an extremely tough group," he admitted. "The home fixtures are vital and then it is about what you can do away from home.
"Everybody is capable of beating each other. We have to win our home games and then pinch results away.
"We know we have to front up and we will be prepared to do that. Our youngsters are starting to mature and they are only going to get better. You're probably only going to see one team going through from a group like this."
The draw has been kinder to the Blues who have been pitted against London Irish, Edinburgh and Racing Metro.
David Young's outfit will be hoping to improve on last season's European campaign after crashing out at the pool stages.
The Ospreys have been placed in Pool 5 where they will face Biarritz, Saracens and Benetton Treviso.
Ospreys Director of coaching Scott Johnson believes his side's draw already whets the appetite for next season.
"We know what each opponent is about, and there should be some great games for the fans next season. We pushed Biarritz all the way out in San Sebastian last year and maybe could have pinched it at the death, while Saracens have just won the Premiership title in England. They beat Leicester at Twickenham last weekend with a really brave performance.
"Then we've got Treviso, a team that had an excellent home record last season and sent away quite a few good teams with their tails between their legs, so although we've won out there we realise how difficult it will be.
"It's a fantastic competition, and seeing the draw really whets the appetite for next season."
Heineken Cup pools
Pool 1: Munster, Northampton Saints, Scarlets, Castres
Pool 2: Cardiff Blues, London Irish, Edinburgh, Racing Metro
Pool 3: Leinster, Bath Rugby, Glasgow, Montpellier
Pool 4: Leicester, Clermont, Ulster, Aironi
Pool 5: Biarritz, Ospreys, Saracens, Benetton Treviso
Pool 6: Toulouse, Harlequins, Gloucester, Connacht