There's already the idea of this argument in the comments, but let me flesh it out.
- For any $C^*$-algebra $A$ and any von Neumann algebra $M$ with $A\subseteq M$ non-degenerately we can identify $M(A)$ with the idealiser of $A$ in $M$, namely $\{ x\in M : ax,xa\in A \ (a\in A) \}$. Here "non-degenerate" means, I guess, that some bai of $A$ converges to $1\in M$ weak$^*$. (You can prove this result by representing $M$ on a Hilbert space; I like the treatment in Pedersen's book, section 3.12).
- $A\otimes A \subseteq A^{**}\bar\otimes A^{**}$ as a $C^*$-subalgebra.
- So $M(A\otimes A) \subseteq A^{**}\bar\otimes A^{**}$ by point 1.
- Hence we can consider $\Delta$ as a $*$-homomorphism $A\rightarrow A^{**}\bar\otimes A^{**}$, the right-hand-side being a von Neumann algebra.
- By the universal property of $A^{**}$ there is a normal $*$-homomorphism $\tilde\Delta: A^{**} \rightarrow A^{**}\bar\otimes A^{**}$ extending $\Delta:A\rightarrow A^{**}\bar\otimes A^{**}$.
- Identify $A^* \widehat\otimes A^*$ with the predual of $A^{**}\bar\otimes A^{**}$ so the pre-adjoint of $\tilde\Delta$ is a map $A^* \widehat\otimes A^* \rightarrow A^*$. (This is just operator space theory; see the chapter of Effros+Ruan about the OSS projective tensor product).
- As $\tilde\Delta$ is a complete contraction, so is $A^* \widehat\otimes A^* \rightarrow A^*$.
- Perform a diagram chase to check that $A^* \widehat\otimes A^* \rightarrow A^*$ is the product map we want.
The tricky bit is perhaps (8). Perhaps we "usually" embed $A^*\odot A^*$ into $M(A\otimes A)^*$ as follows. By Cohen-Hewitt factorisation, any $f\in A^*$ is of the form $f=ga$ for some $g\in A^*, a\in A$. Then, given $f_1\otimes f_2 = g_1a_1\otimes g_2a_2 \in A^*\odot A^*$, and $x\in M(A\otimes A)$, we define
$$ \langle f_1\otimes f_2, x \rangle = \langle g_1\otimes g_2, (a_1\otimes a_2)x \rangle.
$$
One checks that this is well-defined. But now this is the same as $\langle (a_1\otimes a_2)x, g_1\otimes g_2 \rangle$ in the $A^{**}\bar\otimes A^{**}, A^*\widehat\otimes A^*$ pairing, consider $A\otimes A \subseteq A^{**}\bar\otimes A^{**}$. This equals $\langle x, f_1\otimes f_2 \rangle$, when $x\in M(A\otimes A)$ is identified with an element of $A^{**}\bar\otimes A^{**}$. Then (8) follows.