So with further testing I figured out that the subitems function won't work here. I removed the backslash {#genre:sublist(0,1,\.)} and was success full with getting just the 1st part (Fiction) from the #genre field. I tried {#genre:sublist(0,2,\.)} but I got (Fiction.Science Fiction). So the subitem just uses the same separator and can't be used to replace the separator with something else.
So it looks like re() is my best option. Anyone can help me figure out how to replace the periods with backslashes? I would really appreciate some help