Apparatus and method for forming a coil by winding an axially advancing product length around a mandrel. The rotational speed of the winding means is initially adjusted relative to the axial speed of the product length to loosely encircle the mandrel with a relatively short leading section of the product. The leading section is then temporarily held against the mandrel and the speed of the winding means is increased while axially reciprocating the mandrel to produce an evenly distributed, closely packed and tightly wound coil. Upon completion of the coil forming operation, the mandrel is axially withdrawn from the coil, and the coil is discharged from the apparatus.