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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.
There is no need for people with diabetes to give up alcohol simply because of their diabetes. Although alcohol does have an effect on blood sugar levels, with a few precautions and careful management, people with diabetes can also enjoy a drink. There are also alcohol substitutes for those who abstain. In fact, diabetes alcohol guidelines are the same as for the general population.