US-based cereals giant Kellogg has made a protest to the Australian government, claiming that rival company Sanitarium has an unfair market advantage.

Sanitarium Health Foods is a non-profit organisation owned by the US branch of the Seventh Day Adventist Church. This means that the company is able to keep prices lower than competitors and, importantly, is exempt from paying tax in Australia.

Kellogg demanded a review of the regulations surrounding charities and non-profit organisations when Sanitarium completed a deal to supply food manufacturer Dick Smith Foods with cereal products from its extensive portfolio, which also includes snack foods and spreads.

A submission on the issue will be released by Kellogg and Access Economics this Friday (9 February).