Kool-Aid Man’s genitals and organs are located within his “Kool-Aid” bubble; you see it as a pitcher full of Kool-Aid, but Kool-Aid is a liquid and cannot talk or think, don’t be absurd.

Kool-Aid Man likely has a red mesentery pouch to contain his organs, surrounded by Kool-Aid. The penis would appear when Kool-Aid Man is aroused, emerging from small slit. It may be bifurcated, it may have spikes to help Kool-Aid Man deposit an enormous quantity of sperm; further study is needed.

I HATE garbage like this, Kool-Aid man is OBVIOUSLY much more than a walking-talking jug of Kool-Aid.