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The yeast "eats" the sugar and turns it into alcohol.
@lindac92 is correct - yeast "eats" the sugar and the byproduct is alcohol, though any wine/alcohol will still have sugar in it. That being said, like all things, moderation and a healthy lifestyle in general is the goal. With a wine recipe made easy, you can alter the amount of sugar that you use, though the obvious result will be a dryer wine. Try to use unsweetened juice, as this will also help you monitor and control the amount of sugar, and the sweetness of your wine overall.