InBev made its bid for Anheuser-Busch last week, proposing a merger that would form "the world's leading global brewer and one of the world’s top five consumer products companies," according to InBev Chief Executive Officer Carlos Brito.

The proposal calls for InBev to acquire all outstanding common shares of Anheuser-Busch for $65 per share. The combined company would have volumes of 460 million hectoliters and sales of $36.4 billion, InBev said.

Brito said he envisions St. Louis as the headquarters of the U.S. division, as well as a company name that would "evoke Anheuser-Busch’s heritage, reflecting the strong history of Anheuser-Busch's key brands." Budweiser would become the company’s global flagship brand under the proposal. InBev also said it would maintain all of Anheuser-Busch’s U.S. brewery operations, should the acquisition occur, as there is little geographical overlap between the two companies.

Anheuser-Busch acknowledged receiving the unsolicited offer, and said, "its board of directors will evaluate the proposal carefully and in the context of all relevant factors, including Anheuser-Busch's long-term strategic plan. The board will review the merits of the proposal consistent with its fiduciary duties and in consultation with its financial and legal advisers. The board will pursue the course of action that is in the best interests of Anheuser-Busch's stockholders."

Following the offer, newspaper reports suggested Anheuser-Busch was discussing a merger of its own with partner Grupo Modelo. A-B currently holds a nearly 50 percent non-controlling stake in Modelo. In response, InBev sent a second letter to A-B on Sunday, saying that the offer was based on A-B's current assets, business and capital structure, and "it is our strong belief that no alternative transaction you could effectuate would create more value for your shareholders than the $65 per share in cash that we are offering."

Yesterday, Anheuser-Busch President and Chief Executive Officer August Busch IV responded in a letter, saying, “it is Anheuser-Busch’s policy not to confirm, deny, comment or speculate on rumors.

"As we have previously indicated, our Board of Directors is evaluating your proposal carefully and in the context of all relevant factors, including Anheuser-Busch’s long-term strategic plan. Our board will pursue the course of action that is in the best interest of Anheuser-Busch’s stockholders and expects to make its determination in due course."

More on InBev’s proposal.
More on Anheuser-Busch’s response.

Diageo, Norwalk, Conn., is planning an $18 million investment in its Plainfield, Ill., brand technical and bottling facility to add processing and storage capacity as well as upgrade its packaging lines. The company says the expansion is needed to meet demand for Smirnoff. The company purchased 36 acres of land adjacent to the facility last July for $13.9 million.

“In this time of economic uncertainty, we are pleased to make another significant investment in one of our key manufacturing facilities and simultaneously bolster Plainfield’s local economy,” said John Council, president of Diageo, Americas Supply.

Along with Smirnoff, the Plainfield plant produces flavored malt beverages such as Smirnoff Ice and Smirnoff Ice Triple Black, Gordon’s gin and Booths Gin, and houses bottling operations for a number of brands. It produces more than 12 million cases of spirits a year.

Skinny Nutritional Corp., Bala Cynwyd, Pa., has signed new distribution agreements with beer distributors Capitol Beverage Sales, Minneapolis; Thorpe Distributing Co., Rogers, Minn.; and College City Beverage, Dundas, Minn., to carry its five Skinny Water products in Minnesota.

"Beer distributors across America want to carry more non-alcoholic premium products, and tapping into the demand for Skinny Water is a great way to do that," says Don McDonald, president and chief executive officer of Skinny Nutritional. "Minneapolis is a key market for us because it has a large number of Target Stores and is headquarters to Target Corp."

Crystal Springs Water Co., Reno, Nev., was acquired by DS Waters, based in Atlanta. Crystal Springs is the oldest bottled water company in Nevada, providing bottled water delivery service to home and office customers in the northern part of the state. DS Waters carries such brands as Alhambra, Belmont Springs, Crystal Springs, Hinckley Springs, Kentwood Springs, Sierra Springs and Sparkletts. Terms of the transaction were not disclosed.

Dr Pepper Snapple Group introduced an energy drink called Venom, which is packaged in a re-sealable 16.9-ounce aluminum bottle. The energy drink contains caffeine, L-carnitine, guarana, ginseng and taurine. Two flavors include: Black Mamba, a regular flavor; and Mojave Rattler, a low-carbohydrate, low-calorie variety. Find out more about Venom.

Kool-Aid introduced new and reformulated products, including powdered and ready-to-drink beverages. The new products are Sugar Free Kool-Aid, a low-calorie mix reformulated to have 5 calories per serving; Sugar Free Kool-Aid On The Go packets; Kool-Aid Singles, reformulated to have 30 calories per serving; Kool-Aid Burstin’ Waters, a new ready-to-drink flavored water; and Sugar Sweetened Kool-Aid, a drink fortified with vitamins C and E. Read more about Kool Aid.

Skyy Spirits introduced Cutty Sark Blended Malt Scotch Whisky. The product is made with 100 percent malt, and is available in a 750-ml. bottle that retails for $29.99. The Scotch whisky is being tested in Colorado and Georgia, with expansion planned for later this year. Find out more about Cutty Sark.