Organising committee chairwoman Sally Hope said Meridian's decision had left the committee in a "dire situation", with only a short time to find another sponsor.
The celebrations could have gone ahead this year, but in a much reduced form, if the shortfall could not be found, Ms Hope said.
"We were hopeful the council would fund us so we would not be in a position of having to make that decision."
Over the past two years, the celebrations, excluding the Victorian fete on the final day, had cost between $50,000 and $70,000 annually to stage.
The council grant was a one-off payment from Whitestone Contracting Ltd, its wholly-owned company, and the committee would be looking for major sponsorship for next year's event.
Meridian spokesman Alan Seay said yesterday the company had been a major sponsor for 10 years.
"We think we have made a big contribution and it is time for the celebrations to take the next step in their evolution."
The decision not to continue came when Meridian reviewed its "sponsorship portfolio", and it advised the celebrations' organiser last year.
The fete, sponsored by Network Waitaki, was not affected.
Meridian confirmed yesterday it had renewed the Waitaki community fund, which it established in 2006, with $1 million for another three years.
