Abstract: A cup packaging device for seriately receiving, counting and loosely nesting into a group on a first conveyor segment a preset number of cups, nesting the cups into a more tightly nested stack on a subsequent conveyor segment, conveying the tightly nested group of cups at an accelerated speed past a verifying device to determine if the number of cups in the group matches the previously counted number, laterally offloading to a holding tray a stack of cups in response to a count mismatch signal or a downstream component malfunction signal, advancing an acceptable stack into a bagging device, conveying the bagged stack longitudinally out of the bagging device and then transferring the stack laterally into a collection bin. The conveyor system comprises separately driven conveyor segments which are operated at speeds that vary from one another and are also changed during each cycle.