From Lisa Katz,
Your Guide to Judaism.
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Definition:

Kiddush means sanctification. Kiddush refers to the ritual of sanctification, with blessings recited over a cup of wine, that is performed at the beginning of Jewish Sabbath and Jewish festival meals. The purpose of the kiddush is to remind Jews of the sanctity of the day.

Recitation of the Kiddush

Traditionally the head of the house recites the kiddush over a cup of wine immediately before the Sabbath or holiday meal. Following recitation of the kiddush, each person sips wine from the kiddush cup.

Kiddush Cup

It is customary to put the wine or grape juice used in the kiddush ritual into a artistically decorated goblet called a kiddush cup. Kiddish cups are often given as gifts at a child's baby naming or bris, bar or bat mitzvah or wedding.