Points out half of it is alcoholic! (4)
I believe the answer is:
wine
'alcoholic' is the definition.
Although both the answer and definition are singular nouns, I don't understand how they can define each other.
'points out half of it' is the wordplay.
'points' becomes 'wne' (I can't justify this - if you can you should give a lot more credence to this answer).
'out' is an insertion indicator.
'half of' indicates taking half.
'it' with half the letters taken is 'i'.
'wne' placed around 'i' is 'WINE'.
'is' is the link.
Can you help me to learn more?
(Other definitions for wine that I've seen before include "champagne, perhaps" , "Alcohol" , "A sweet white cargo of Masefield's" , "Accompaniment for women and song?" , "Fermented grape juice" .)