Martin Hyson, who has been interim managing director since November 2006, will take up the new Musgrave role of group business development director.
Smith most recently served as commercial and operations director for the UK national lottery operator, Camelot. Prior to Camelot, Smith was with Somerfield, where he was group marketing director. He previously spent 10 years in leadership roles at Kraft General Foods.
Commenting on the appointment Chris Martin, Musgrave Group CEO said: "Phil joins Musgrave at a very exciting time in the development of our British business. Significant progress has been made, with the Budgens divestment programme on schedule and both the Budgens and Londis offer reshaped in the past 12 months to meet consumer demand.
"Phil's combination of experience in food and in retailing makes him ideally suited to build on recent progress and to lead our business in Great Britain over the coming years."
Martin added: "We are very fortunate to have had Martin Hyson leading the Musgrave GB business. He has been pivotal to developing that business and our Londis and Budgens brands. I am looking forward to continuing to work with him in his new role."
Smith said: "Musgrave's unique way of working and supporting retailers, its strong company values and the exciting potential of the business are what attracted me to taking up this challenge. I'm looking forward to working with Budgens and Londis retailers."