At the end of its first year, Agassiz launched a limited edition Bock Beer made with orange peel and Manitoba honey, which sold out in hours.

As per that US distribution agreement, once De Pape left, Beverage Wholesalers wanted nothing to do with Agassiz and the contract ended.

Immediately after, Manitoba and Saskatchewan sales of its beers dropped and Agassiz Brewing had difficulty covering operating costs as it was only selling a small volume, of its 600,000 litre capacity.

After considering several options, including approaching rival Fort Garry, it closed its Winnipeg operation on January 31, 2002, sold its assets and went bankrupt to re-emerge as a contract brewer, known as New Manitoba Brewing Ltd.[3] New Manitoba handled marketing, sales, and distribution, leaving brewing and packaging to Northern Breweries of Sudbury, Ontario.

On October 15, 2004, New Manitoba signed an agreement with its former rival for that company to warehouse, distribute and market Agassiz brands.