Crossword Genius

Where wine is produced, drink out of bag (6)

Ross

I believe the answer is:

alsace

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'where wine' is the definition.
'Alsace' can be an answer for 'wine' (thesaurus). I am unsure of the 'where' bit.

'produced drink out of bag' is the wordplay.
'produced drink' becomes 'ale' (type of beer. I am not sure about the 'produced' bit.).
'out of' means one lot of letters goes inside another (some letters on the outside of others).
'bag' becomes 'sac' (a small bag).
'ale' enclosing 'sac' is 'ALSACE'.

'is' acts as a link.

Can you help me to learn more?

(Other definitions for alsace that I've seen before include "French ------ -Lorraine, was German 1872-1919" , "Region of France famous for white wine" , "Region of France bordering Germany and Switzerland" , "Wine-producing area" , "Region of northeastern France famous for its wines" .)

I've seen this clue in The Sunday Times.
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