INSIGHTS: WINTER 2018 — CASE STUDY: SETTERSTIX CORPORATION

Company

Setterstix has manufactured paper sticks for the confectionary, pharmaceutical and medical industries since 1938. Setterstix currently employs 42 people, including unionized production personnel, at its Cattaraugus facility. The company sells 17 billion sticks a year throughout the U.S. with about 10% of sales exported to Canada, Mexico, Africa and China. Over time the sales mix has shifted from 70% healthcare/30% confectionary to about 95% confectionary and food products. Major OEM accounts and consumer brands include Tootsie Roll Pops, Charms, Spangler (Dum Dums), Cake Pops and Hot Dogs on a Stick. Their sticks are also seen in specialty food products at Disney World and Starbucks.

Situation

Although Setterstix is not a food processor, they are subject to many of the same regulations and requirements. Their sticks come into direct contact with food and are subject to food safety standards. Several years ago a number of accounts dictated that Setterstix implement a formal food safety program known as Hazard Analysis Critical Control Point or HACCP, so Setterstix turned to Insyte Consulting.

Solution

Insyte Consulting helped the company perform a gap analysis of its current practices relative to accepted standards of food safety. Based on this analysis a plan was designed to close the gap and meet the required food industry safety standards. A formal, quality structure, including food safety HACCP control procedures, internal review, correction action and management review processes was developed. Insyte provided assistance in developing, training, implementing and monitoring the HACCP quality structure. This positioned Setterstix to have a formal food-safety audit conducted through a certifi ed, third party.

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