The award-winning pub posted a note on its Facebook page on Monday, advising customers and tourists of its decision.
The statement said: “After much consideration and assessing our current situation we have made the very difficult decision to postpone the annual beer festival for another year.
"We know this will come as a huge disappointment to those of you who pencil it in to your annual events schedule, so we apologise profusely.
"With all our other exciting projects and the opening of two of our new venues, it would simply be too much for us to handle, not least the industry-wide staff shortages which is impacting the hospitality sector right now.
"We are, however, going to continue with our live bands during the whole of the summer on Saturdays and selected special days.
"To keep up-to-date with what's on, keep an eye out on our social media events pages to see who is playing and when. Once again, apologies for any disappointment caused.”
The company which runs The Craster Arms also has the popular Salt Water Cafe in Beadnell, just a few steps away from the pub, and has taken over the Black Swan in Seahouses, which is due to reopen soon.
The Craster Arms is also a firm favourite with locals and visitors. At the height of the pandemic, it provided free hot meals three times a week and on Sunday lunchtimes to 93 vulnerable and shielding members of the local community.