WINE THAT IS SMOKED OR HAS RE'ACH RA [Kidush: wine]
Gemara
(Mishnah): On the southwest corner of the Mizbe'ach above, we do Nesachim of wine and water...
64b (Mishnah): Anyone who ascends the Mizbe'ach circles around... (except for these...)
(R. Yochanan): He does not circle around for these lest the Nesachim absorb the smoke.
Menachos 86b (Mishnah): We do not bring for Nesachim wine that is sweet, smoked or cooked. If it was brought, it is Pasul.
Bava Basra 20b (Beraisa): One may set up a bakery under another's storehouse of wine, because this improves the wine.
(Rav Yosef): Even smoke of a candle harms wine of Bavel.
95b (Beraisa): One blesses sheha'Kol on wine she'Hikrim (became slimy).
97a (Rav): One must say Kidush on wine Kosher for Nesachim.
Suggestion: He excludes wine from the top or bottom of the barrel.
Rejection: R. Chiya taught that one should not bring such wine for Nesachim, but if he did, it is Kosher! (Therefore, it is l'Chatchilah for Kidush.)
Rather, he excludes wine with Re'ach Ra (a bad smell).
Avodah Zarah 66b: Abaye holds that if wine received the smell of the vinegar, even if it tastes like wine, it is considered vinegar.
Rava holds that it is considered wine.
Bechoros 17a (Rav Ashi): If one draped a vine over a fig tree, wine from its grapes is Pasul for Nesachim. It says "Zevach u'Nesachim" - just like the Zevach must be unchanged, also the Nesachim. Draping a vine over a fig tree changes the smell of the wine.
Rishonim
The Rif (Pesachim 22b) brings the Gemara in Bava Basra.
Ran (DH Ein): We disqualify (for Kidush) wine Pasul for Nesachim due to its inferiority. This rule does not exclude cooked or smoked wine, for cooking improves wine, just like smoking it improves it (20b)! They are Pasul for Nesachim because they changed. They are Kosher for Kidush.
Ran (DH Aval): One may say Kidush only on wine Kosher for Nesachim, since one can say Kidush on bread. One cannot say Havdalah and Birkas ha'Mazon on bread, therefore Chemar Medinah (an esteemed beverage that people drink in this locale in place of wine) suffices for Havdalah, and for Birkas ha'Mazon if one fixed his meal on that drink.
Rambam (Hilchos Shabbos 29:14): 'Wine Kosher for Nesachim' excludes only wine that smells bad, was exposed or was cooked. One may not say Kidush on them.
Rambam (Hilchos Ma'aseh ha'Korbanos 7:11): Anyone who ascends the Mizbe'ach circles around, except for one bringing Nesachim of wine or water, lest it become smoked.
Ri Korkus: If the wine become smoked, it is Pasul, like it says in Menachos.
Rashi (64b DH Yis'ashnu): When he goes around, the wine gets smoked from the smoke of the Ma'arachah, and we hold that smoked wine is Pasul.
Perush ha'Mishnayos (Menachos 8:5-6): Smoked wine is wine that was put in a Keli with a bad smell. The wine has vapors, and it is called sxd.
Rashi (86b DH Me'ushan): When the grapes are bitter, they smoke them, in order to sweeten them, or they cook them.
Tosfos Yom Tov (Menachos 8:6): Kaf Nachas says that they smoke the wooden barrels with sulfur when they are new. The wine gets a better scent and taste. However, it is known that this is harmful to drink. Therefore, it is Pasul.
Rosh (Bava Basra 6:10): One must say Kidush on wine Kosher for Nesachim. In Menachos we disqualify cooked wine b'Di'eved for Menachos, but here we conclude that 'Kidush wine must be Kosher for Nesachim' disqualifies only wine with a bad smell, that was exposed or changed for the worse. Cooked wine is Pasul for Menachos because it changed from its initial state, just like wine from a vine that grew over a fig tree (Bechoros 17a).
Rashi (Bava Basra 20b DH b'Yayin): We permit a bakery under a storehouse of wine, for smoke does not harm wine.
Tosfos (Bava Basra 18a DH Lo): Rashi says that we forbid a bakery under a storehouse (not of wine), for the smoke harms what is stored. R. Tam challenged this, for we permit a bakery under a storehouse of wine, for it improves it. Surely smoke harms wine. Smoked wine is Pasul for Nesachim! Rather, the plastered ceiling prevents the smoke from entering the storehouse. The heat of the bakery harms what is stored, but benefits wine. Below, the text should say 'Rav Yosef says that even heat (not smoke) of a candle harms wine of Bavel.'
Poskim
Shulchan Aruch (OC 204:3): If it smells like vinegar and tastes like wine, we bless on it Borei Peri ha'Gafen.
Beis Yosef (DH u'Mah she'Chosav v'Yayin): If it smells like wine and tastes like vinegar, we bless sheha'Kol. The Tur explains that this is 'wine she'Hikrim.' If it smells like vinegar and tastes like wine, Abaye and Rava argue about this. The Halachah follows Rava; it is wine, and we bless on it Borei Peri ha'Gafen.
Shulchan Aruch (4): If people refrain from drinking it due to its sourness, we do not say on it Borei Peri ha'Gafen (Rema - rather, sheha'Kol).
Beis Yosef (DH Kasuv): Shibolei ha'Leket (145) says that we are not proficient to know what is considered vinegar to permit if a Nochri touched it, but regarding Berachah, if people refrain from drinking it due to its sourness, it is called vinegar and we do not say on it Borei Peri ha'Gafen.
Shulchan Aruch (272:1): One may not say Kidush on wine with a bad smell, even if it has the smell and taste of wine.
Beis Yosef (DH u'Bi'ur): 'Its smell is bad' means that it spoiled a little, but it did not sour. It smells and tastes like wine, and we bless Borei Peri ha'Gafen on it. Even so, we do not say Kidush on it, for it is a little spoiled.
Rema: We do not say Kidush on wine that smells like wine and tastes like vinegar.
Taz (3): This is obvious! We do not even say Borei Peri ha'Gafen on such wine! This is 'wine she'Hikrim' (204:3, Bava Basra 95) according to Rav Chisda, and we bless sheha'Kol on it. This is unlike the Bach, who says that we bless Borei Peri ha'Gafen as long as it was not slimy. If it smells like vinegar, this is worse than being slimy! However, it seems that whenever it smells like vinegar, it is slimy.
Gra (DH v'Ein): We hold that it depends on taste. However, Tosfos (96a DH ha'Bodek) says that it cannot smell like wine and taste like vinegar.
Mishnah Berurah (1): One may not be Mekadesh on such wine, even if he has no other wine. Even b'Di'eved, it seems that he was not Yotzei.
Bi'ur Halachah (DH Ein): The Birkei Yosef says that the Ramban says that b'Di'eved he was not Yotzei. He suggests that the Ritva, who says that red wine is merely l'Chatchilah, would be Machshir also wine with Re'ach Ra b'Di'eved. However, even he said that these are different! It is not clear why it should be Pasul b'Di'eved due to "Hakrivehu Na l'Fechasecha..." (if you would give such a gift to your governor, would he accept it and be pleased)?! Hakrivehu Na applies to a weak animal offered for a Korban, but the Korban is Kosher! The same applies to Kidush! The Gemara said that what is Kosher b'Di'eved for Nesachim is Kosher l'Chatchilah for Kidush. It seems that this is only when it is Pasul for other reasons. Then, Kidush is less stringent than Nesachim. When l'Chatchilah it is Pasul for Nesachim due to Hakrivehu Na, presumably l'Chatchilah we are stringent also about Kidush. B'Di'eved it is Kosher for Nesachim, and all the more so for Kidush.
Nishmas Chaim (R. Chaim Berlin) 87: The Isur of "Hakrivehu Na" is mid'Oraisa. Rashi (Zevachim 68b DH she'Nismeis) says that this disqualifies birds, so they are Neveilos. We are Mechalel Shabbos in order to offer a nicer animal due to "Hakrivehu Na" (Menachos 64a).
Toras Chaim (R. Yosef Chaim Zonenfeld) 20: The Isur of "Hakrivehu Na" is mid'Oraisa. It is not merely from Nevi'im. The Gemara often says 'we do not need a verse. This is logical!'
Kaf ha'Chayim (5): Since Kidush on wine is mid'Rabanan, if one was Mekadesh on wine with Re'ach Ra, we can say that he was Yotzei and he need not repeat Kidush.
R. Akiva Eiger (1): The Ramban says that one may say Havdalah over white wine, even though he disqualifies it for Kidush, for it is no worse than beer. If so, one may use it for the morning Kidush. The same applies to all the Pesulim in this Siman.
Sha'ar Efrayim (18): If wine is slightly spoiled due to the barrels, we learn from Bava Basra, which explicitly disqualifies wine with Re'ach Ra for Kidush. The Rashbam explains that it was put it dirty barrels. For Havdalah or morning Kidush, it seems that it is Kosher. We say Havdalah on Chemar Medinah, even though we may not say Kidush ha'Yom (the night Kidush) on it. However, perhaps this is because one may say Kidush ha'Yom on bread, but there is no difference between wines Kosher for Kidush or Havdalah. The Ran disqualifies Chemar Medinah for Kidush only because one can say Kidush on bread. If so, wine with Re'ach Ra is Kosher for Havdalah, for it is no worse than Chemar Medinah. However, the Beis Yosef brought an opinion that permits Kidush on beer even though it could be said on bread, and even so wine with Re'ach Ra is Pasul. This shows that beer is better than wine with Re'ach Ra, so also for Havdalah wine with Re'ach Ra is Pasul. This requires investigation.
Mishnah Berurah (1): I say that the Pesulim are Pasul also for Havdalah, due to "Hakrivehu Na..." I found that the Birkei Yosef says so. Likewise, one may not say Kidush on bad smelling beer.
Bi'ur Halachah (DH Al): Also Sha'ar Efrayim suggested like R. Akiva Eiger. I disagree. White wine is Kosher for Havdalah, even though it is not called wine, for it is no worse than Chemar Medinah, like the Gra says. Here, the problem is Hakrivehu Na. There is no reason to distinguish Kidush from Havdalah or the morning Kidush!
Kaf ha'Chayim (8): Beis Yehudah says that we do not distinguish Havdalah from Kidush regarding this. This is not only like the Rambam, who holds that Havdalah is mid'Oraisa. Even those who say that it is mid'Rabanan hold that Chachamim enacted like mid'Oraisa.
Mishnah Berurah (2): The wine smells bad because it was in a foul Keli. We bless Borei Peri ha'Gafen on it. It is Pasul due to "Hakrivehu Na..."
Bi'ur Halachah (DH she'Reicho): I did not see Poskim discuss wine that did not spoil, just it absorbed a different smell from the Keli. Perhaps Menachos 86b proves that one must be stringent. Perush ha'Mishnayos says that this is smoked wine. (Tosfos Yom Tov cites Perush ha'Mishnayos to say that the Keli had a bad smell), but the primary text of the Rambam says only that it had a smell. In Hilchos Isurei Mizbe'ach (6:1), he lists smoked wine separately from wine with Re'ach Ra.) Since it changed detrimentally, it is Pasul also for Kidush. However, if we explain smoked wine simply, like Rashi, Tosfos and the Ran, there is no proof. Perhaps "Hakrivehu Na..." applies also to this. This requires investigation.
Kaf ha'Chayim (4): If one mixed wine with Re'ach Ra with good wine and the mixture has no Re'ach Ra, one may say Kidush on it.