Alcohol is a fun part of social life but it also serves some more serious purposes in Socio by altering your values and give you some advantages and disadvantages. First let's review how alcohol is made and used.
To make alcohol you need to have Brewer skill. The raw material is molasses which is created by a chef and empty bottles which are created by glassblowers. You then need a cauldron and brewer's tool and you're in business. You can create carious sorts of spirits with different degrees of alcohol. Use your common sense here. Beer has less alcohol than vodka usually.
To drink alcohol, you need a glass or a cup. There are various sorts of glasses made by the glassblowers. When you have a bottle and a glass in your inventory, just draw the bottle over the glass, which fills the glass, then draw the glass on your paperdoll to drink. You can also make other characters drink when you have them selected in your paperdoll, but only if you are holding them.
The more alcohol you drink, the more drunk you become, depending on the alcohol content of your drink. Keep an eye on the Drink urge bars in your stats window over the paperdoll:

The upper bar (sunken, urge) is your degree of addictiveness to alcohol. When you use alcohol, your urge/addictiveness will eventually rise. The lower bar (risen/satisfaction) is the current alcohol level in your blood. Note that the drinking urge doesn't exactly work like the other urges, which is why it is treated separately here.
When the lower bar rises above a certain level, you become drunk. You realize that when you start to mumble when you talk and perhaps even stumble around and can't really go where you want to go.
Whenever you're drunk and continue to drink, your drinking urge itself will rise a little bit. So drinking past the point of being drunk will rise your urge/addictiveness and will slowly make you an alcoholics. This is not a bad thing in itself. The consequence of a high drinking urge is, that you need more alcohol to become drunk again. In case you rely on a Social Drinking situation, this may become an obstacle over time
If you get drunk in s social situation, you are considered socially drunk. You can recognize that when the green light comes up next to your drink urge bars. When that happens, the positive effects of social drinking come into play:
A character gets socially drunk, when he drinks in a social situation. This is the case when the character drinks in a room while being there with a prostitute he has hired or when the character is drinking in a bar with at least 3 other PCs present. One prostitute present in the bar may also qualify as a social situation but that is randomly. By relying on only one prostitute as company ion the bar, the social drinking status will be reached later than when having the 3 PCs present. This means that your overall alcohol level will be higher before you reach social drunk status.
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