Cumbrian microbrewer Hesket Newmarket opened its first pub, the Shepherd Inn, at Melmerby, last June, but has announced plans to quit.
The microbrewery had struck a deal with Enterprise Inns to allow it to sell its own beers alongside the pubco's usual products, but now the brewery has said it is pulling out to focus on brewing. The pub had been closed for six months before the brewer took over last summer.
Mike Parker, Hesket Newmarket Brewery acting chairman, said: "We have a manager in there at the moment, but we have discovered that the business model is not working for us.
"It's a beautiful pub and we are reluctant to let it go, but we have decided that this is not the kind of thing we should be in.
"It would do brilliantly for a husband and wife team, but as a managed house it wasn't terribly successful —it's not big enough and doesn't have any letting bedrooms.
"We have decided our main focus should be on brewing good beer, and selling it through the SIBA (Society of Independent Brewers) direct delivery scheme."
The co-operative supplies the Old Crown at Hesket Newmarket, as well as other free trade pubs in the area.
Parker said the firm plans to keep the pub open and trading until a new tenant
can be found.