Aldi's own-brand sherry costing £5.25 and Asda's £6 sauvignon blanc have both won gold medals at the prestigious International Wine Challenge.
Judges said the days when consumers were embarrassed to take cheaper labels to a dinner party were "long gone".
Marks & Spencer, Tesco, Sainsbury's, Waitrose, Morrisons and Aldi all picked up gold medals for wines from their own-brand ranges.
"From delicious champagnes to tremendous sherries, shoppers can find some lovely wines in the aisles. Each year the quality of the supermarket own-brand wines gets better and better," said International Wine Challenge co-chairman Charles Metcalfe.
British wine dealer Stephen Williams is being sued for £15 million over claims he sold bottles of fake rare vintages.
They include a Château d'Yquem from 1787, sold in 2006, which at £55,000 is one of the most expensive bottles of wine ever sold. But their American buyer later became suspicious and called in a wine detective.
An expert from one of France's great estates also appeared to back his claim but Mr Williams - and his company The Antique Wine Company - strongly deny the allegations.