Bava Batra 97: Consecrations and Kiddush

Wine that is produced by pouring water over leaves (shemarim) that are terumah - the first 2 pourings are considered terumah still, but by the third, it loses that standing, unless it still has the taste of wine. That question of "taste" carries many ramifications as well. Also, to be able to make kiddush on "wine," the wine itself has to be eligible for libations on the altar.