A process for producing a malted beverage powder which reduces drying requirements. Malted beverage ingredients, which have a total moisture content of less than about 9% by weight, are introduced into an extruder and are extrusion cooked at a temperature less than about 150°C. During extrusion cooking, an inert gas is introduced into the extruder and homogeneously mixed into the malted beverage ingredients to produce a gassed molten mass. The gassed molten mass is extruded through one or more orifices to provide an expanded extrudate which is then chilled to stabilise the expanded structure of the expanded extrudate. The expanded extrudate is comminuted to powder.