Detroit’s Castalia Cocktail Bar, Known for Unique Scent Pairings, to Close

Castalia at Sfumato, a Detroit cocktail bar celebrated for its innovative pairings of fragrances and drinks, announced yesterday it will close on New Year’s Eve, ending an eight-year run in Midtown.

Located within a historic Victorian home on Second Avenue, Castalia operated as a perfumery during the day and a cocktail bar at night, focusing on the harmony between flavors and natural scents from its sister business, Sfumato. The bar was co-founded and owned by Kevin Peterson and Jane Larson, along with Erica Kassel and Kyle Dupree. According to a Facebook post, the decision to close isn’t due to financial difficulties or external pressures. “We’re not out of money, we’re not out of ideas… Rather, after a marvelous run of 8 years, we are choosing to go out on top,” the post stated.

Peterson explained in a recent interview that the approaching end of the lease played a role in the decision. He added that while the team is “crafting better drinks than ever before,” the existing structures are now hindering further growth. The closure of Castalia represents a loss for Detroit’s vibrant culinary scene, which has gained national recognition in recent years. The bar has unveiled a final cocktail menu, dubbed the “Afterlife Menu,” featuring over a dozen alcoholic and non-alcoholic options, available at castaliacocktails.com. For more on Detroit’s food and beverage industry, explore resources from the Michigan Economic Development Corporation.

Peterson told the Free Press that they are “focused on closing things out tastefully” and preparing for a new chapter, though details remain unconfirmed. “We are planning a new chapter nothing is solidified,” he said.