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Well, I wouldn't say that I'm shocked, but obviously... that's pretty crazy. Especially in today's litigious society. There's probably some small laws and/or ordinances being broken with regards to the "packaging" of a styrofoam cup of smokeless. And you could lay down odds that any powder manufacturer or distributor getting wind of your shop's methods would like intervene in some manner.
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I've bought a few pounds of powder like that, but instead of Styrofoam cups, it was heavy-duty paper cups (like take-out soup might come in.) I transferred them to empty gunpowder containers when I got home because I wasn't planning to use them up right away (still have some.)
After seeing what gasoline does to Styrofoam, I'm not sure I'd trust the solvents and nitroglycerin in gunpowder not to eat a hole in it