Yes, that is what this game is. I bought this game as a mystery item and popped it into my Atari to find out what it was.
Game: Kool-Aid Man
System: Atari 2600 (VCS)
Release Date: 1983
Status: Oooohhhh yeaaaahhh!!!! I have never played this game, but I like to collect games that are based on advertisements. Interesting note, but you could get this game for free if you had 125 proof points from your old Kool-Aid packets.
More Info: https://en.wikipedia.org/wiki/Kool-Aid_Man_(video_game)