We start with "normal" alcoholic wine. The wine goes through a very tight filter. The filter is so tight that only the water and ethanol (alcohol) in the wine can pass through (they are the smallest molecules in wine).

The color and tannins (provide flavor and melatonin for better sleep) are left behind. They are too big to pass through the tight filter… so we save them for later.

Now we are left with two substances. One being a mixture of water & ethanol (alcohol). The other, a mixture of tannins (the flavor) and color.

Now we are left with three substances. Water, alcohol, and the tannins/color.

We use a process called distillation to separate the water and ethanol (alcohol).

We combine the water and the tannins/color… and the final product is wine, without the alcohol.