Your sponsor is getting a high quality, inexpensive promotion out of this. Sponsorships like this are sold in the college and professional sporting leagues all the time. You shouldn't be shy about this. But when you ask for this you should let your sponsor know that you are going to put extra effort into passing them out. You will make sure that as many people as possible get a set.
Some businesses are easier to approach than others.
The CheerStix have a high visibility factor that some businesses really like. Car dealerships, banks, even radio stations are a good place to start. Yes, they are. They make a tremendous ding, but that is why the crowd loves them. BUT, make sure to check the rules very carefully and do not be fooled by rumors.