There is a profound connection between holiness and happiness. This is why Kiddush and Havdala (below, section 24), the rituals in which we mention the sanctity of Shabbat, require a cup of wine, which makes people happy (23:11 above). It is preferable to enhance the mitzva by using a fine wine that the person making Kiddush really enjoys drinking. Someone who finds drinking wine difficult may use grape juice, even though it is non-alcoholic.
The first Kiddush begins the Friday night meal. Its text (which can be found in the prayerbook) is comprised of verses that relate to the creation, then the blessing over wine, and finally the blessing of “Who sanctifies the Shabbat.” The Sages instituted Kiddush on Shabbat morning as well, to honor and differentiate it from weekdays. Beginning Shabbat lunch with Kiddush makes it clear that this meal is special and important. Nevertheless, since the mitzva of Zakhor has already been fulfilled on Friday night, it is sufficient on Shabbat day to simply recite the blessing over the wine.