A beverage cooler is described. It is equipped with an external valve or spigot in fluid communication with an internal bag or bladder containing the beverage to be dispensed. The bag is typically connected to the external spigot by a length of hose or something similar. The bag and hose include complementary fittings that allow the bag to be attached to the conduit for dispensing of the beverage and enable it to be removed when empty. Once the bag is connected, ice can be placed in the cooler to keep the beverage cold.