A beverage dispenser that uses a slurry ice heat transfer approach to achieve a lower cost solution for controlling the temperature of a beverage to be dispensed. A cost effective heat transfer approach can be achieved by replacing the cold plate or refrigeration system of prior art beverage dispensers with a slurry ice bath. The invention provides a hopper into which a slurry ice bath is created. The hopper has an access door for receiving ice and an interior valve for dispensing either carbonated water or still water to form a slurry ice bath. Coils containing a beverage to be dispensed are submersed in the slurry ice bath. The slurry ice causes heat to transfer from the coils, thereby maintaining the coils at a certain temperature.