Ah hah, so we've gotten to the actual problem. It's not just beer breath that bothers you, it's the fact that it changes the way he acts, and not in a desirable way. Also, you lost your grandfather (was it the booze that killed him or just age?) which seems to scare you. I will say this, everyone is affected by alcohol differently in the mental and physical ways, and also in the overall life way. Everyone's definition of "alcoholic" is different as well. Personally, I'd say it's not the quantity of alcohol consumed that warrants alcoholism, it's the balance between booze and life. I drink several glasses of wine every single night before bed, and my lady will drink with me about 25% of the time. In so many words I'd say my life is mostly unaffected by alcohol. I don't have any booze-related regrets that I can think of either, and no one has ever said anything in the realm of "you should drink less" or that my drinking has affected them. I have to say, my lady has indicated that she actually finds booze-breath attractive, she calls it manly. I become an animal if I have a little nip before the action.
Regardless, the problem is that the amount of alcohol he consumes regularly, it's having an undesirable (for you) result on his behavior, and you find it unattractive. I STRONGLY disagree with some of the suggestions above, such as masturbating when he drinks a beer, don't play head games like that. Communicate with your husband, it doesn't sound like you have expressed to him enough how much this affects you, he's probably completely unaware of the pattern of not having sex when he drinks. Just find a compromise, work out a solution that works for the both of you. This really doesn't sound like and probably shouldn't be this big of an issue.
Or tell him to start smoking weed.
Sex on THC is quite underrated. It's absolutely NOTHING like just being stoned, so don't go on saying "it makes me paranoid", that's from lack of tolerance and a poor set/setting. I'm serious, try it, you don't have to get BAKED out of your mind, just a little puff and hit the sack!