Genius Foods has replaced its CEO after less than 18 months in the job as its new owners look to progress a turnaround at the gluten-free baker.
German confectionery group Katjes bought the company in June 2022, immediately launching a strategic refocus towards high-margin products with a strong market share in the UK.
Adam Smart was brought in as CEO in April 2023 and was thanked this week by the owners for “stabilising the business”.
He will be replaced by Stephen Hann, currently CEO at wrapper-free snack bar brand One Good Thing, in January.
Genius Foods has haemorrhaged sales over the past few years, with Warburtons becoming the market leader having reinvigorated its gluten-free range. An additional challenger has also emerged in free-from baker Promise, which has undergone rapid growth since it was acquired by PE firm Mayfair in 2017.
Genius has posted operating losses in nine out of the past 10 years, most recently a loss of £2.6m in 2022 despite a 6% rise in sales, according to its latest annual accounts.
In 2023, retail sales slumped a further 12% to £11.7m as it lost more ground to Warburtons and Promise, according to The Grocer’s Top Products survey, based on NIQ data.
Smart leaves Genius having led Katjes’ initial efforts to streamline operations, optimise logistics and refine the product portfolio. He also oversaw a withdrawal from the US and Australian markets.
“It has been a rewarding challenge to lead Genius Foods through this period of reorganisation,” Smart said. “With the strong foundations we have established, I am confident that Genius Foods will continue to thrive under Stephen Hann’s leadership.”
Hann has more than 20 years’ experience in fmcg, including roles as Kraft Heinz, Graze and Tails.com.
“I’m thrilled to be joining Genius Foods at such a pivotal time,” he said. “This is a company with incredible growth potential, and I’m eager to build on the strong foundation laid by Adam, driving the business toward new heights in operational efficiency and market expansion.”
Genius board member Bastian Fassin added: “Adam has stabilised the business and built a strong team. We thank him for his dedication and are delighted to welcome Stephen Hann as an experienced successor to lead the company through its next phase of development.”
Genius was founded in 2009 by Lucinda Bruce-Gardyne after her son was diagnosed with coeliac disease.
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