Dive Brief:
- Boulder Brands, a natural foods manufacturer that produces the Evol Foods, Smart Balance, and Udi's gluten-free brands, has announced that its cofounder and CEO Stephen Hughes has resigned following a poor fiscal quarter.
- Hughes' interim replacement is COO James Leighton.
- The company expects its sales to fall in the second fiscal quarter to somewhere between $122 million and $124 million, which is a 5% to 7% decrease from last year's second quarter.
Dive Insight:
According to Denver Post, "The company's natural category, which includes brands such as Udi's, is expected to have flat or a minimal increase in sales. Sales in the Balance segment of oil-based spreads are expected to fall between 16 percent and 18 percent, officials said." This turn of events may seem somewhat atypical in the context of the consumer trend toward healthier, more natural foods, of which Boulder Brands owns several product lines.
According to Denver Post Business, the departure could cost $4.5 million.
The trouble for Boulder Brands doesn't end there, as it is now also the subject of class action lawsuits. These lawsuits allege that the company was not forthcoming about the poor performance of some of its brands or expected gross margins.