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According to the Mayo Clinic, excessive alcohol consumption can increase a person's risk of developing type 2 diabetes. When women consume more than one drink per day, or when men consume more than two drinks per day, the pancreas may become inflamed. When inflammation develops, the pancreas may not be able to secrete insulin. This eventually leads to diabetes.
For all people, alcohol can lower blood sugar. So for people with diabetes, it is recommended that any alcohol be consumed with a meal. In all cases, alcohol still contains calories, so remember to include it in the meal plan (one alcoholic drink is 1 fat exchange).