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Lane said they didn't know how caffeine drove up the glucose levels but they had a couple of ideas:It could be that caffeine interferes with the process that moves glucose from the blood and into muscle and other cells in the body where it is used for fuel. It may also be that caffeine triggers the release of adrenaline -- the fight or flight -- hormone that we know can also boost sugar levels
However, James Lane, Ph.D., the medical psychologist who led the Duke study, stated of people with Type 2 diabetes that "They may find that it's easier for them to keep their glucose down if they avoid caffeine." Writing on the subject in the January/February 2008 issue of Diabetes Self-Management magazine, though, Lynn Grieger, R.D., C.D.E, C.P.T., suggests that "Until more studies are conducted, it is probably best to limit coffee intake to moderate levels."
Blood sugar levels are supposed to rise after you eat. To keep your blood sugar levels from rising too high, your pancreas releases insulin. The researchers found that taking caffeine causes blood sugar and insulin levels to rise even higher after meals. If your blood sugar rises too high, sugar sticks to cells. Once sugar is stuck on a cell membrane, it cannot be released and is converted to a poison called sorbitol which destroys that cell. High levels of insulin constrict arteries to cause heart attacks and act directly on the brain to make you hungry, on your liver to make more fat, and on the fat cells in your belly to pick up that fat. If these studies are confirmed, diabetics will be advised to restrict coffee as well as those foods that cause the highest rise in blood sugar after meals.
When caffeine was removed from the coffee, blood sugar levels did not rise higher than normal. On the basis of this study, diabetics should drink decaffeinated coffee, rather than one with caffeine