The Australian chatshow's host Yumi Stynes caused controversy when she mocked the intelligence of Victoria Cross medal recipient Ben Roberts-Smith. Panellist George Negus also annoyed viewers by making jokes about the soldier's sexual ability.
According to the Herald Sun, Swisse Vitamins were the first advertisers to pull out of its sponsorship of the show, followed by Big4 Holiday Parks.
Now coffee company Jamaica Blue has followed suit. A spokesperson said: "After much deliberation, the Foodco Group - owner of the Jamaica Blue franchise brand - has opted to cease its sponsorship of The Circle, effective today.
"As Foodco has previously stated, we do not - in any way - endorse nor condone the offensive remarks broadcast on The Circle last week regarding SAS Corporal Roberts-Smith."
Stynes made a public apology immediately after the incident, saying that she felt "sick" about her comments. Roberts-Smith later insisted that he had forgiven the stars for their jibes, saying that he just wanted to "put this matter behind" him.
Last year, sponsors boycotted Kyle Sandilands' 2DayFM radio show after he launched an on-air verbal tirade aimed at a female journalist, calling her a "fat slag" and threatening to "hunt her down".
> George Negus: 'War hero Ben Roberts-Smith not upset about my TV jibes'
> Yumi Stynes' fiancé leaps to her defence after war hero jibes backlash