** Totally untrue: Fresh and Easy has 2 dollar a bottle wine that is actually not just drinkable, but fairly tasty. Try the "sweet white", I actually rather recommend it. It's nothing super fancy, but that doesn't stop it from tasting good (though I suppose it is by definition not a "cheap red wine", but still. Their reds are probably decent, too, if you like red wine). They also sell 1.5L bottles of sangria, both red and white, for 4 dollars each, that are actually better than some quite a bit more expensive sangrias I've had at semi-fancy restaurants. I was as shocked as you. --AdamField|
A stellar example of the genre is G.W. Morris Merlot, $2.99 a bottle at Trader Joe's. Nice aroma, fine red-wine-warm-tummy-and-buzzy-head effect, but TastesLikeKetchup (though the aftertaste is okay).
In the modern era (circa 2013), Trader Joe's and Charles Shaw have worked hard and long to create the magical and bountiful concoction which is TwoBuckChuck?. This wine is, as its namesake suggests, $2 for a fifth (plus bottle tax) and is created by blending the surplus ~$10 wines of each type that Charles Shaw sells otherwise. The result: the best alcohol you can consume for under $5.