An apparatus and method are provided for cooling a dispensed beverage. Direct cooling of the beverage is achieved by circulation of a refrigerant in contact with a reservoir that holds the beverage just prior to being dispensed. The reservoir is disposed within a dispense font. The open space within the font acts as an evaporator of a closed refrigeration loop thereby achieving cooling without having to use a separate heat transfer loop. A refrigeration subsystem is mounted directly adjacent the dispense font to provide a controlled flow of refrigerant to the open space within the font. Evaporated refrigerant is recycled in the refrigeration subsystem.