Abstract: A method and apparatus are disclosed for applying wrapped packages to each cup associated with a nested stack of cups. The stack of cups is continuously fed through a channel defined by a conveyor belt assembly and a pair of rotatable cylindrical rollers having helical continuous grooves formed therein along a fixed path without rotating the cups. The cups are partially denested by the rollers to expose a package receiving surface of each cup. A rotatable applicator assembly retrieves a wrapped packages from a holding bin and applies the package to then exposed package receiving surface of each cup. The packages are removably secured to the cups by an adhesive applied between the package and the package receiving surface of each cup prior to the application of the package to the cup. The wrapped package is urged into engagement with the package receiving surface of each cup by a package compression device.