The supermarket won 146 medals for its own-brand wines - up 29 on last year - including 12 golds at the influential International Wine Challenge beating Morrisons into second place with 61.
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M&S impressed the judges at the wine world's equivalent of the Oscars with a £9 Hermits Hill Botrytis Semillon 2013 and Marquès del Romeral Reserva Rioja 2011 from Spain priced £13.50. It also picked up 36 silvers and 98 bronzes.
Last year's IWC Supermarket of the Year, Morrisons received an impressive 61 medals for its own-label range, including five Gold medals, 17 Silvers and 39 Bronze medals.
White wine fans will be clamouring for a taste of its gold medal winner, Morrisons The Best Chablis 1er Cru 2014 at £15 and filling their trolley with £8.99 bottles of Morrisons The Best Rioja Reserva Blanco 2011.
Asda came third with 37 awards - more than double its 2016 medal count - to pick up a gold for its Italian Wine Atlas Negroamaro 2016, available for just £5.48.
Each wine rated by the IWC is blind taste-tested three times, by at least 10 different adjudicators from around the world. 350 supermarket own-brand wines were awarded medals, including 26 Gold, 120 Silver and 204 Bronze medals. Tesco picked up 36, Waitrose 24, Aldi 24, The Co-op 14 and Sainsbury's 4.
English winemakers were also awarded an outstanding 108 medals including 16 Gold medals, 39 Silver and 53 Bronze medals.
Charles Metcalfe MW, Co-Chairman of the IWC, who founded the competition 35 years ago, said: "The quality of supermarket own-brand continues to soar proving you can get fantastic wines at outstanding prices in the shopping aisles."
Suzanne Webb, wine manager at Marks and Spencer, added: "The IWC is a prestigious competition, and in the sometimes confusing world of wine we know our customers appreciate the endorsement and reassurance that comes with these accolades."
10 winners under £10
Raise a toast: These highly rated bottles of fizz come in at a bargain price
Asda Wine Atlas Negroamaro 2016 , £5.68
Waitrose Fino NV, £6.99
Waitrose Manzanilla NV, £6.99