A machine and a method for forming a two-compartment pouch having a lower compartment and an upper compartment The method includes the steps of drawing a film over a pair of fill tubes; sealing side edges of the film to form a sleeve; forming a bottom seal on the sleeve; pulling the sleeve downwardly; filling a bottom portion of the pouch using one of the fill tubes; forming a second seal over the filled bottom portion; filling an upper portion of the pouch using the other fill tube; and sealing the upper portion.