Yeah, because water used to be much harder to sanitize, and “beer” (thick, lumpy, mildly alcoholic – think fermented porridge) is basically liquid bread. Doing manual labor all day takes a lot of calories, and cereals are much cheaper than alternative foods. It’s hardly a healthy diet though.
Keeping peasants drunk enough to be pliable is a side benefit much appreciated by the lords of just about every feudal/plantation economy throughout history.