Can you consume alcohol while doing the Atkins Diet? No and yes. What alcohol can you consume on the Atkins Diet? Obviously low carb ones.
Is it okay to drink while on Atkins Diet?
No alcohol consumption if you are still doing the induction phase. You need these two weeks to deal with your food addictions. The body will burn the alcohol for fuel before it burns the carbs and fat. So it would slow down the fat burning process. Drinking lowers your inhibitions and can lead to lapses in judgement. Plus there is some research indicating that even the so-called zero carb drinks such as whiskey can result in insulin spikes.
Yes but with moderation when you are moving to the later phases, OWL and so on but not while in induction. When you move to OWL, pick drinks with zero carbs like vodka, gin, whiskey or Bacardi rather than going for beer.
If you must drink alcohol, straight liquor such as scotch, rye, vodka, and gin would be the best choices as long as the mixer contains no sugar. If you have added alcohol to your diet and suddenly stop losing, give it up.
Just be careful though with the alcohol, as munching and crunching always seem to go with it. So you need to plan ahead. Bring along your own low carb snacks.
And I quote from Robert C. Atkins,
Here’s the problem with all alcoholic beverages, and the reason I recommend refraining from alcohol consumption on the diet. Alcohol, whenever taken in, is the first fuel to burn. While that’s going on, your body will not burn fat. This does not stop the weight loss, it simply postpones it, since the alcohol does not store as glycogen, and you immediately go back into ketosis/lipolysis after the alcohol is used up.
If you must drink alcohol, wine is an acceptable addition to levels beyond the Induction diet. If wine does not suit your taste, straight liquor such as scotch, rye, vodka, and gin would be appropriate, as long as the mixer is sugarless; this means no juice, tonic water; or non-diet soda. Seltzer and diet soda are appropriate.
The downside of alcohol consumption while on Atkins Diet? If you have indulged in a glass or two of wine on occasion and weight loss comes to a dead stop and I mean for days, you will probably get discouraged because of the slow progress of weight loss.

Well, until the alcohol is burned off your body will not burn fat. Fat burning will be postponed until all the alcohol has been used up. How long that will take depends on how much you had. A glass or two of wine wouldn’t normally stop weight loss for days. It has 7 calories per gram. It may just not agree with you.
Some people have issue with alcohol slowing their weight loss and some don`t (lucky people who usually go for moderate intake). Honestly you`re just going to have to try it and see what happens. No one can tell you what will happen to you. Even if you have a setback, at least you`ll know, right? You will only be able to make the right decision after knowing what works for your body.
We don’t lose weight everyday and some not every week, and don’t forget alcohol consumption impairs your judgement. In this case of doing Atkins Diet and including alcohol consumption in it, maybe a tape measure is a better indication of your progress.