1-- No meaning is projected by the words you have quoted. 2-- reduce = to bring to a certain state, condition, arrangement, etc.: 'to reduce glass to powder'.
I read somewhere that ashes and wine refer to the ashes of the logs burned in a fireplace and the remnants of wine from a night before when everything was warm and good. Its use in this song sooms to ask whether or not her relatioship will continue, or if it is "ashes and wine," the unreversible remnants of a previous time.