Was nihonshu (what English refers to as "sake") always called nihonshu, or was it only called that once western alcoholic beverages were introduced to Japan?
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The 日本国語大辞典's earliest cite for 日本酒 (nihonshu) is 1886, in Tsubouchi Shoyo's 内地雑居 未来之夢, which is to judge from the title a book about foreigners in Japan. I'd say the chances are good that 日本酒 (nihonshu) is a recent coinage, and before that, the drink was simply called 酒 (sake).
Incidentally, again according to the 日本国語大辞典, the word 葡萄酒 (budōshu) for "[grape] wine" has been around for at least 500 years.