Dry wine European bottles getting badge of honour (7)
I believe the answer is:
rosette
'badge of honour' is the definition.
'dry wine european bottles' is the wordplay.
'dry' becomes 'tt' (abbreviation for teetotal).
'wine' becomes 'rose' (rose is a kind of wine).
'european' becomes 'E' (abbreviation e.g. EU).
'bottles' means one lot of letters goes inside another ('bottle' can mean to contain).
'rose'+'e'='rosee'
'tt' inserted within 'rosee' is 'ROSETTE'.
'getting' acts as a link.
(Other definitions for rosette that I've seen before include "Colours" , "Ribboned decoration" , "Type of award" , "Equestrian prize" , "Flower-like badge" .)