It was invented sometime in the 70's initially for the family-picnic market, being cheap and affordable, packaged a bountiful amount, easily discarded, designed to hold a savvy amount of liquid. There was no real intention of a major market flux towards frat parties and so-forth but the design functions listed above sound pretty desirable for your average student looking for 'more for less'. Clean up is also a lot easier with red cups laying around opposed to cans and bottles.