The Christmas Jug Band is something of a roots music holiday supergroup; its best known member is probably hot licks evangelist Dan Hicks, but the others have plenty of bonafides too. And it’s a pretty long-running one, at that.
As for this track (which is, along with “Someone Stole My Santa Claus Suit,” one of their best-known numbers), this is purely about words, with absolutely no other connotations. What on earth are you suggesting, reader?