Melt the butter in a heavy saucepan. Add the shallots and garlic and cook over moderate heat until just beginning to brown, 3 to 4 minutes, stirring with a wooden spoon. Add all but 3 tablespoons of the wine and boil over high heat until reduced to about 2/3 cup.
Reduce the heat and stir in the ketchup, brown sugar, honey, liquid smoke, salt and pepper. Gently simmer the sauce until thick and richly flavored, 10 to 12 minutes, adding the remaining 3 tablespoons wine after 6 minutes. Correct the seasoning, adding salt and pepper to taste.