...but now the Federal Bureau of ATF is blocking that miracle. Developing story.
"Palcohol" is a trade name for powdered alcohol. Just add water and voila, an alcoholic beverage is at hand. When I first heard of this story from a coworker, I was incredulous. "How can that work?" I thought.
What has been done is the entrapment of ethanol inside larger molecules like starches and cyclodextrins. The booze is already there, and the water acts to release it and also to dilute it. Here is a DIY recipe for powdered booze.