The effects of water content and tempeature variation on the release of flavor components into the headspace over flavors, encapsulated by an extrusion process, in low water content carbohydrate matrixes is studied. The largest amounts of release occurred when the matrix was above its glass transition temperature, whether this was due to increased water content or elevated temperature. Under these conditions up to 70% of the sucrose in the matrix crystallized over a period of 10 days, as quantified using Fourier transform Raman spectroscopy. Smaller amounts of headspace release occurred when the water content of the encapsulated flavor system was decreased from 3.5 to 3.1% w/w. Small amounts of release occurred from the “as prepared” materials, which were associated with the presence of small amounts of unencapsulated flavor oil with direct access to the headspace. It was concluded that release due to matrix permeability was relatively slow as compared with the above mechanisms.