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The alcohol does cook out of the beer.
If you are worried, use ginger-beer instead. I have made it that way and it works perfectly.

If you do not have a packet of taco seasoning mix this may help as a substitute:
1/2 tsp Chili powder (more if you do not like it mild)
1 Tbsp Paprika
1/2 tsp Oregano
1 Tsp Cumin
1 Tsp Brown sugar
2 Tsp Stock Powder (I have used one that has celery, garlic, onion and other vegetable flavours in it, I have also used chicken stock and beef stock, all worked fine)
Taste and add salt if needed before serving - I found I did not.

This is the recipe that drew me to this site. I saw it featured on a flight from Australia to New Zealand. I love love love this recipe.

I do not think it matters much what type of beer you use. I had Heineken in the house last time I made this. Previously I have used Speights. Ginger beer works too.

This is great. We have it in tacos. It is great for lunches the next day too.

Love this. The sauce is just amazing.

I wish I could edit my earlier review. This is great. I have no idea what I did wrong the first time round but I have made it twice since then and both those times it was wonderful.