Kool-Aid was invented by Gerard and Edwin Perkins in Hastings, Nebraska. Its predecessor was a liquid concentrate called Fruit Smack. To reduce shipping costs, in 1927, Perkins discovered a way to remove the liquid from Fruit Smack, leaving only a powder. This powder was named Kool-Ade (and a few years later, it was renamed 'Kool-Aid' due to a change in US Government regulations regarding the need for fruit juice in products using the term "Ade"). Perkins moved his production to Chicago in 1931 and Kool-Aid was sold to General Foods in 1953. _Wikipedia
A powdered fruit flavoring that is mixed with regular granulated sugar and water by the customer to make a pitcherful of soft drink. It is a brand name that has become a generic term used to mean any inexpensive fruity soft drink mix or non-carbonated fruity soft drink.