A beverage assembly includes a housing having a liquid reservoir, an inlet portion formed in the housing, a beverage container configured to be removably accommodated within the inlet portion and having a fracturable seal and containing a beverage ingredient of a first size, a grinding mechanism positioned within the housing and in fluid communication with the inlet portion, and a piercing assembly positioned within the housing, wherein the piercing assembly selectively pierces the fracturable seal thereby causing said beverage ingredient to enter the grinding mechanism. The grinding mechanism selectively transforms the beverage ingredient from the first size to a second size, the second size being smaller than the first size. The beverage assembly further includes a brewing area disposed beneath the grinding assembly and configured to removably accommodate the beverage container after the beverage container has been pierced by the piercing assembly.