Sanitarium Health Food Company is fielding claims made in the media by U.S. multi-national Kellogg that tax concessions accorded Sanitarium, a non-profit organization, confer “unfair commercial advantage.”  The claim was raised in a media release issued by Kellogg giving details of its submission to a federal government inquiry into the Definition of Charities and Related Organizations.

“Sanitarium’s non-profit status doesn’t give us a commercial advantage,” says Sanitarium’s chief executive Kevin Jackson in a joint statement released by Sanitarium and the Adventist Church in the South Pacific. “Even without non-profit status we would continue to put all our profits into community support.”

Established in 1898, Sanitarium currently holds 23 percent of the Australian breakfast cereal market and is the manufacturer of Weet-bix, the country’s best-selling breakfast cereal.  The company also produces a range of soy milk products, meat analogs, health snacks, and spreads such as peanut butter.

Sanitarium’s profits go to community support and humanitarian aid programs.  Although the company is not eligible to pay corporate tax on profit, Sanitarium pays all applicable Federal and State taxes, including Goods and Services Tax. 

“The church has made a submission to the government inquiry on charities,” says Rodney Brady, treasurer for the Adventist Church in the South Pacific region. “The inquiry is looking at definitions for the charitable sector in Australia.  This is of great interest to the church, not just for Sanitarium but for the whole of the church’s operations in Australia.”  Brady notes that, since making its submission, the church has been invited to participate in a focus group set up by the inquiry.

The government inquiry is expected to conclude its work by the end of March.  All submissions made to the inquiry are publicly available online at www.cdi.gov.au.