It's used in making a toast in wine (4)
I believe the answer is:
asti
'wine' is the definition.
(Italian wine)
'it's used in making a toast in' is the wordplay.
'it's used in' indicates a hidden word.
'ASTI' can be found hidden inside 'making toast in'.
(Other definitions for asti that I've seen before include "Sparkling wine named after an Italian Piedmont town" , "- spumante, It. wine" , "Alcohol" , "Sparkling white wine" , "White wine named after a town in Piedmont" .)