A kit for preparing a chocolate beverage comprise a first container containing at least a chocolate beverage ingredient such as cocoa solids and cocoa butter, for transferring into a beverage receptacle and a second separate container for use in a beverage preparation machine 53 and containing at least milk solids. The second container may be a cartridge, capsule, pod or pad. A method of preparing a chocolate beverage is also described involving transferring at least a portion of the contents of the first container to a beverage receptacle and dispensing a beverage medium from a beverage preparation machine into the beverage receptacle, whereby the beverage medium is formed by passing an aqueous medium through the second container.