BREWER Scottish & Newcastle said yesterday that it will increase beer and cider prices for wholesalers next month.

Britain's biggest brewer said beer prices will go up 3.5 per cent and cider will increase by 3.9 per cent in the new year.

The move comes as S&N tries to offset rising running costs, including the price of energy, water treatment and aluminium.

S&N, with brands including Kronenbourg 1664, Foster's and Newcastle Brown Ale, said it has written to wholesale customers such as Booker, Bestway and Parfetts to inform them of the price hikes.

It is thought that S&N will also push for similar price increases at supermarkets next year. It is due to review cider prices at pubs in February and beer prices in March and said that any increases would be ''reasonable''.