Murphy's Brewery has decided to end its nine-year association with the annual Cat Laughs comedy festival in Kilkenny city.
One of the most popular of the country's summer festivals, it runs during the June bank holiday weekend.
It attracts a crowd of around 100,000 to the city.
The development was confirmed by the festival's director, Mr Richard Cook, yesterday. He said that the termination of the sponsorship deal had been mutual.
Mr Cook added that while he was optimistic for next year, nothing could be taken for granted.
Mr Gerry Rafter, chairman of Kilkenny City Vintners, said he was sorry to see it happen. He said that the Murphy's Cat Laughs had been a huge success for Kilkenny in terms of business and tourism.
"I sincerely hope a new sponsor can be found and that Richard Cook will be back with another Cat Laughs," he said.