By Shashwat Awasthi (Reuters) -Shares of Fevertree Drinks surged almost 24% after Molson Coors' took an 8.5% stake in the firm, in a deal giving the beer giant exclusive rights to market the British company's cocktail mixers and tonic water in the United States.

As part of the agreement, the beer giant will manage the sales, distribution and production of Fevertree’s products in the US.

Miller Lite brewer Molson Coors (TAP) says it will expand its U.S. soft drinks business through a strategic partnership with UK-based

The London-listed mixer-maker said Molson Coors would acquire an 8.5% shareholding in Fevertree.

By Shashwat Awasthi (Reuters) -Shares of Fevertree Drinks surged almost 24% after Molson Coors took an 8.5% stake in a $88 million deal that gives the beer giant exclusive rights to market the British company's cocktail mixers and tonic water in the United States.

The agreement will see Molson Coors handle the exclusive sales, distribution and production of the Fevertree brand in the US.

The sale of an 8.5% shareholding in Fever-Tree is part of a broader partnership between the two firms, with Molson Coors now exclusively responsible for the sales, distribution and production of the Fever-Tree brand in the US.

US brewer Molson Coors is to buy an 8.5% stake in Fevertree for £71m, with the proceeds to be returned to shareholders via a share buyback.

Molson Coors Beverage Co. announced Thursday that it has acquired an 8.5% stake in Fevertree Drinks PLC, the British premium mixer brand, for £71 million ($88 million). The deal is part of Molson Coors’ strategy to diversify beyond beer and expand Fevertree’s presence in the U.