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.
ITV News Correspondent Neil Connery reports:
One large glass of wine a day could contain enough of a tumour-fighting compound to prevent bowel cancer, research suggests.
The plant chemical, resveratrol, is found in the skins of grapes and concentrated in red wine.
Scientists have long known that resveratrol has anti-cancer properties, as well as effects that might benefit diabetes and heart disease patients.
But a question mark remains over what dose of the compound it is best to take.
The new research suggests that for fighting bowel cancer it is very small - around five milligrams per day.
That is about the amount of resveratrol typically found in one large glass of red wine, or two small glasses.