Organisers have encouraged people to gift their ticket prices to a charitable cause.
Stonehaven’s Midsummer Beer Happening, which celebrates beer, music and food, was due to take place from June 20 until June 22.
Last year’s event welcomed 6,000 people and raised £52,000 for charity.
Tonight, organiser Robert Lindsay said the “disappointing” decision had been made to cancel the event.
He said: “We had held off from making this decision for as long as possible given the huge effort already put into preparing this year’s event and we had sincerely hoped to offer some good news in these dark days.
“However, given the ongoing drive to protect our NHS and save lives, it is clear the beer festival cannot take place as planned from June 20 to 22.”
Moving forward, Mr Lindsay is encouraging people to “gift” the cost of their ticket to the Happening’s fundraiser for the Stonehaven Men’s Shed.
He said: “We are also aware the loss of the tens of thousands of pounds raised by the Happening will be a blow to the town’s community which has seen many great projects boosted over the years.
“While we will, without hesitation, give full refunds to those who have bought tickets already, we are asking people to consider gifting their ticket prices to a charitable cause instead.
“If you don’t want to contribute 100%, please think about donating a portion, be it 10%, 20%, 50% or whatever you think would be appropriate.
“Whatever you give, 100% of your donation will go directly to the charity we have nominated to support this year – Stonehaven’s Men’s Shed which offers a place for men of all ages to meet, socialise and be active on a range of projects, including many which directly benefit the community.
“Obviously not in use at the moment, however the shed will be vitally important as we begin to emerge from this crises in better times.”