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I don't know how it's made, but alcohol's a chemical that's in some drinks. It can have effects on you if you drink too much of it or aren't used to it. A lot of it's chemistry and I'm not great with that, but basically you want to drink a lot of water to help with the headache.
Oh, but you definitely don't want to ask adults about it. They don't think kids can be responsible about how much they drink, so they made a law that says we can't have any until we're 21. So you don't want to let adults know you did.