A dispensing system of the present invention includes a chute assembly and a rectangular container for dispensing of particulate material in the container. The chute assembly includes door and latch mechanisms which are opened to receive the rectangular container. Insertion of the rectangular container into the chute assembly automatically engages the latch mechanism, allowing the doors to open, which then engages a cutting subassembly of the chute assembly to open the container and expose the particulate contents for dispensing. The container includes an outer cardboard container, a cardboard insert having a wedge-shaped circumference at one end thereof, and a plasticized or foil liner. The container includes means for partially exposing the liner prior to insertion of the container into the chute assembly.