Abstract: An apparatus for disposing a premium package on an exterior panel of a cereal or foodstuff box includes a supply or stacking station, a cereal compressing station, a premium inserting station, a cover applying and sealing station and a conveyor assembly which moves the boxes horizontally from one station to the next. The boxes are stacked in the stacking station positioned over the conveyor assembly and removed serially and individually by transverse members of the conveyor assembly. The compressing station includes a synchronous plunger which engages a previously formed opening or cut out in the box and ensures a suitable space within the box for the premium package. The premium package which is sealed by a first layer of transparent material is installed in the cut out either manually or by a synchronous loader. The sealing station applies a second, larger adhesive, preferably transparent cover over the premium package which secures it to the box.