Abstract: The invention relates to beverage dispensing apparatus of the kind comprising a tank, heater for heating a liquid contained therein, and container for storing concentrated beverage and dispensing it to a mixing chamber. An object of the present invention is to provide such dispensing apparatus, in which provision is made for dispensing beverages with an alternative ingredient to water, or an additional liquid ingredient, such as milk. The invention is characterized in that a pump is provided for feeding a liquid ingredient (e.g. milk or other dairy product), through the water tank for indirect heat exchange therewith, in that a temperature controlled mechanism is provided for controlling the outlet temperature of the liquid ingredient from the tank, and in that the liquid ingredient is fed in controlled, pre-determined quantities as required, to the mixing chamber.