Powders for use as additives or ingredients in foodstuffs comprise ethanol microencapsulated in an edible matrix. The edible matrix may be one or more of an oil, wax or gelling agent. The edible matrix also preferably includes an emulsifying agent. The powder is prepared by liquefying the edible matrix, adding ethanol, homogenising the liquefied edible matrix and ethanol source and spray chilling the homogenised mixture for form the powder. The ethanol contained in the powder is derived from an ethanol source, which may be an alcoholic beverage such as one or more of spirits, liqueur, wine or beer. The ethanol source preferably imparts both alcoholic beverage flavour and ethanolic content to the powder and foodstuffs prepared therefrom. The powder may be used to add a alcohol to ice cream without depressing its freezing point.