The custom of toasting began with wishing good health to young maidens. You would repeat their name and some sort of utterance of health as you sipped from your beverage. The word toast to honor someone comes from the old tradition of flavoring drinks with spiced toast. The honor was a metaphorical flavoring for your drink.
Spiced toast was often placed in the bottom of wine and beer way back in the day. Not only did it spice the drink, it also soaked up the dregs from poorly filtered drinks.