I think the phrase originated here:
(Wikipedia) The Electric Kool-Aid Acid Test is a 1968 nonfiction book by Tom Wolfe.[2] The book is a popular example of the New Journalism literary style. Wolfe presents a first hand account of the experiences of Ken Kesey and his band of Merry Pranksters, who traveled across the US in a colorfully painted school bus, the Furthur, whose name was painted on the destination sign, indicating the general ethos of the Pranksters.[3] Kesey and the Pranksters became famous for their use of psychedelic drugs such as LSD in order to achieve expansion of their consciousness.[4] The book chronicles the Acid Tests (parties with LSD-laced Kool-Aid), encounters with notable figures of the time (Hells Angels, Grateful Dead, Allen Ginsberg) and describes Kesey's exile to Mexico and his arrests.
(Wikipedia) The Electric Kool-Aid Acid Test is a 1968 nonfiction book by Tom Wolfe.[2] The book is a popular example of the New Journalism literary style. Wolfe presents a first hand account of the experiences of Ken Kesey and his band of Merry Pranksters, who traveled across the US in a colorfully painted school bus, the Furthur, whose name was painted on the destination sign, indicating the general ethos of the Pranksters.[3] Kesey and the Pranksters became famous for their use of psychedelic drugs such as LSD in order to achieve expansion of their consciousness.[4] The book chronicles the Acid Tests (parties with LSD-laced Kool-Aid), encounters with notable figures of the time (Hells Angels, Grateful Dead, Allen Ginsberg) and describes Kesey's exile to Mexico and his arrests.