Why do some people add wine when cooking? What is the logic behind?

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I'll have to try the sherry in my next mushroom soup, @Cooking Goddess - thanks!

When do you add it - at the end, or in the early part, before simmering? Or both? I don't remember offhand, but there is a soup I used it in, and it was added at the end.
 
Will wine make the food taste better? What is kind of food whose flavor will be obviously enhanced with wine?
Wine (and other spirits) will add a depth of flavor that would not be there without it. I add about ¼ cup of red wine while simmering a quick tomato sauce for pasta so that it tastes like I took more time. Red wine in beef stew gives it a bit more body - as does a cup (or half cup) of dark beer. I will even add a tablespoon or two of Bourbon to applesauce or sautéed apples to give them a touch of caramel flavor. Food is good without alcohol, just a bit different when a bit is added. Only you and your taste buds can decide if it works for you.
 
Will wine make the food taste better? What is kind of food whose flavor will be obviously enhanced with wine?
Not always. I used some cheap wine that we didn't like in a recipe for coq au vin, that I had used many times. At the time I considered my dish ruined, albeit still edible. Lesson learned.

A friend said that the rule for which wine to use is "something the cook can enjoy while cooking the dish". It doesn't have to be fancy wine, but if you usually like wine, don't use something you don't want to drink.
 
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