Boston Brewing's decision came after a Boston restaurant, Club Cafe, said it would no longer serve Sam Adams, the Boston Globe reported. The restaurant's move quickly gathered online support and Boston Beer released a statement Friday saying it was ending its involvement in the parade, scheduled for Sunday.
Participation by homosexual groups has become a hot issue in both Boston and New York this year.
On Saturday, Chicago held its St. Patrick's Day parade without controversy, the Chicago Tribune said. In an annual tradition, a special orange dye was dumped into the Chicago River downtown turning the river a bright green.
New York Mayor Bill De Blasio has said he will not participate in the country's largest St. Patrick's parade, set for Monday, and the city council president said individual members can march but there will be no official council president.
In Boston, Mayor Marty Walsh tried to negotiate a settlement that would have allowed a gay veterans group to march. He has said that as things stand he will not be there.
Organizers of both parades have denied being homophobic and have said gays and lesbians are welcome as individuals.