An apparatus and method for producing a frozen beverage employs a freeze chamber (134) for receiving a beverage solution such that, in use, liquid freezes out of the beverage solution to form frozen particles on a curved internal circumferential wall (130) of the chamber (134). The frozen particles are sheared from the wall (130) by a vortex induced in the fluid with an impeller (144) such that the particles are entrained in the beverage solution creating an ice slurry. A cage (156) is free to rotate in the chamber (134) and assist shearing of the frozen particles from the wall (130). The relative speed of rotation between the impeller (144) and cage (156) can be used to control cooling means for forming the frozen particles on the wall (130) such that an ice fraction is produced that is suitable for dispensing as a frozen beverage.