A process and apparatus for preparing diced or sliced pepperoni includes the steps of preparing the pepperoni meat mixture by grinding and mixing to specification. The blended sausage is extruded into sheet form for fermentation and cooking, following which the cooled meat mixture is chilled to 35.degree. F. or lower and sliced or sliced and diced. The product is thereafter conveyed to a spiral dryer where it is exposed to relatively warm (about 50.degree. F. to 120.degree. F.) air at an initial relative humidity of 30% or less under turbulent air flow. The dried pepperoni is conveyed to a chiller or freezer. The pepperoni has desirable flow characteristics when compared to product made using known pepperoni manufacturing processes.