Dig out old wine — terrible! It lacks body (8)
I believe the answer is:
excavate
'dig out' is the definition.
(I've seen this before)
'old wine terrible it lacks body' is the wordplay.
'old' becomes 'ex' (prefix meaning former or onetime).
'wine' becomes 'cava' (type of Spanish wine).
'it lacks body' means to remove the middle letters (the \'body\' of the word is deleted).
'terrible' with its centre removed is 'te'.
'ex'+'cava'+'te'='EXCAVATE'
(Other definitions for excavate that I've seen before include "Quarry" , "mine" , "With spade" , "Dig out material from the ground" , "Dig a hole" .)