Abstract: An apparatus and method for producing container assemblies having a cup-shaped insert disposed within a container. A container conveyor conveys a series of open containers along a lower horizontal path, the container conveyor bringing each container in turn to a stop at an insertion station. A generally vertical inserter chute is disposed above the insertion station for conducting a generally cup-shaped insert through the inserter and out the lower end into a container positioned at the insertion station. An insert conveyor disposed above the inserter conveys a series of inserts along an upper horizontal path, each insert on the insert conveyor having an open end and an opposite closed end and being in an inverted orientation such that the open end of the insert faces downward. A lead one of the inserts being conveyed on the insert conveyor tips over and falls into the inserter in an upright orientation.