Lightly grease a baking sheet or a large plate with cooking spray or butter to prevent the taffy from sticking as it cools.

In a medium saucepan, combine the granulated sugar, corn syrup, and water. Stir gently until the sugar dissolves. Stop stirring and let the mixture come to a boil, monitoring the temperature with a candy thermometer. Cook until it reaches 250°F–260°F (soft-ball stage).

Remove the saucepan from the heat and stir in the Kool-Aid powder and baking soda. The mixture will bubble up slightly.

Pour the hot mixture onto the prepared baking sheet or plate. Allow it to cool for 5-10 minutes until it’s safe to handle. Grease your hands with butter or cooking spray, then begin pulling and stretching the taffy for about 10-15 minutes.

Once the taffy has cooled enough to handle, roll it into a long rope and cut it into bite-sized pieces using scissors or a sharp knife. Wrap each piece in wax paper or plastic wrap to keep it fresh.