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Unfortunately, if your parents are footing the bill, they should have some say in the matter. You can ask them to respect your wishes, or you can try to compromise. Maybe at least do a champagne toast or something.
I do agree with PP's that if your parents are paying it's their decision. If alcohol makes you and your FI uncomfortable you can suggest serving just beer and wine or a signature drink like Rebecca said and explain to your parents your reasons for not wanting any alcohol at all but if you're not contributing financially you're really just along for the ride.
My fiance and I both don't drink, and we're paying for the wedding ourselves so we have decided not to provide alcohol. Also, it's a Sunday afternoon so kind of different than a Saturday night party IMHO. But, our venue has a cash bar so if people really, really want to drink that bad they can go get it themselves. Not in love with the idea of a cash bar, but also not in love with the idea of paying for the alcohol I'm not even going to drink. If your parents are paying for the wedding then I would do everything you can to appease them, even if it means making compromises. I would LOVE to have parents helping, but that's just not my situation. Good luck.