A dispensing unit for dispensing hot, dairy-based beverages has a self-contained refrigerated unit located above a venturi-type emulsification foaming head. The dispensing unit has particular applicability to the dispensation of foamy, hot milk for use in beverages such as cappuccino and nonfoamy, hot milk for use in beverages such as coffee latte, hot chocolate, and other hot dairy-based beverages. The refrigeration unit accommodates a "bag in box" cold milk storage container of the type widely used in food service establishments. The dispensing unit employs a pinch valve that avoids direct contact between the milk and the valve components. The refrigerated milk is stored above the level of the foamer head so that the flow of milk results partially from gravitational force on the milk, and is not totally dependent upon venturi suction created in the foamer head.