He will hand over responsibility for the independent brewery in Bridport, West Dorset, to Josh Palmer Ramus.
Coinciding with his retirement, the company has agreed to buy back all outstanding shares held by Palmer.
Palmer, the sales and marketing director, has been at the helm of the brewer with his brother John.
The brewery’s chairman and managing director John Palmer said: “We are proud to announce this deal to take Palmers into the next chapter of the business’ 229 year history.
“A huge thank you to our staff, licensees and customers for their longstanding support, this is at the heart of what it means to us to be a family business."
Looking to the future
He added: “My daughter, Emily, and I look forward to continuing to work together to ensure Palmers is successful for generations to come.”
Palmers has been producing fine ales since 1794. It now creates a core range of five real ales and small batch seasonal brews.
The ales and craft key are brewed in the original Old Brewery in Bridport. They combine the “finest ingredients with traditional methods,” according to Palmers.
The brewery also operates pubs across the south west of England, often based in scenic locations with a foodie focus.
These include the Anchor Inn, Seatown, Dorset, which includes a cliff top beer garden and has three bedrooms with sea views.
The Axminster Inn in Axminister, Devon, serves snacks and a range of Palmers Ale. It hosts pub games and music nights, and boasts a skittle alley and a courtyard garden.