Abstract: An apparatus and method for destacking and dispensing cup-like containers, such as for use in association with an automated product packaging machine, are disclosed. The apparatus includes pairs of upper and lower jaws associated with each stack of containers received by the apparatus. Both the upper and lower jaws are mounted for movement inwardly and outwardly relative to each stack, with the lower jaws further mounted for vertical movement relative to the upper jaws. By this arrangement, the lower jaws can be operated to destack and separate the lowermost container of each stack, so that the separated container is received on a product conveyor of the packaging machine.