But Davies insisted the prospect missing out on Europe's top tier for the first time in the competition's history will not have have any bearing on Scarlets' plans for the future.
He said: "It won't have any effect on our plans for next season in terms of where we are,? he said.
"It's not a one-year plan we have, it's a three or four-year plan. We are consolidating. The fact we have signed Stephen Jones on for another year shows we are intent on moving forward."
The Scarlets do have a lifeline in the shape of the Blues. Should Dai Young's team win the Amlin Challenge Cup then the Scsarlets will sneak their way into a competition they were candidates for winning during the Gareth Jenkins years.
But those days have passed and last weekend the Scarlets led 16-15 at half-time following Regan King's try and the boot of Jones. But four second-tries by the Blues saw them run out comfortable winners in the Magners League tie.
Davies said: "All credit to the Blues. I thought, in the second half, they upped their game and we couldn't really manage them.
"They played with width, kept the ball and off-loaded really well. We matched them in the first half and worked hard to lead at the break, but we were unable to live with them afterwards.
"It's very disappointing. I thought there were a couple of key moments, but the try early in the second half was a killer."