They die after the fermentation process. But if you’re asking why they’re alive during the process, probably because of the way they produce it. The bacteria that were used to produce ethanol has high ethanol tolerance. An analogy I can think of is like the way we produce stomach acid in our stomachs, but we can’t drink it or let it on our skin without harming ourselves.
Bacteria does not produce alcohol. Fungi called yeast produces alcohol.
However, your point remains true, alcohol still kills yeast. It’s all about concentration. Beers and wine can be produced by yeast, up until about 15%. Past there, it kills the yeast. To make a harder alcohol, you have to distill (basically purify by boiling) the alcohol yeast produces.
Why does yeast produce a substance that kills it? Well, because it’s a waste product. It’s exactly equivalent to asking why a large concentration of CO2 or urine will kill you. Because it’s waste you are try it dispell, and if unsuccessful, it will kill you.
Yeast produces alcohol, but it’s also pretty good at surviving in alcohol (to a point). Other microorganisms aren’t. This kills off everything that isn’t yeast.
Lactobacillus, the bacteria used in sauerkraut and other fun fermenter foods, produces acid. They’re pretty good at surviving in acid, while other microorganisms aren’t.
I think you can see the general strategy here: there’s food, so let’s change the environment so that only my species can eat it!
At least, that’s one theory in the topic.
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