Abstract: A beverage dispensing machine (2) has a housing that provides a receptacle for receiving an expandable cartridge (12) that is coupled into the machine so that it can receive a charge of water. A kneading system (40) is provided to act on the cartridge within the receptacle. The kneading system is activated after water has been allowed to enter the cartridge and mechanically acts on or from the exterior of the cartridge in order to compress and release regions of the cartridge in order to create vigorous agitation to move the contents of the cartridge around inside the main compartment and bring them into close contact with a charge of water from the supply. Such a machine allows a wide variety of beverages to be created conveniently on demand from freeze-dried ingredients that can be stored inside the cartridges with a long shelf life.