This is a catchy piece of slogan against drugs using rhyming words, "hugs" [hʌgz] and "drugs" [drʌgz]. One way to look at it would be an advice to spend more time with loved ones (hugs) than to do drugs. The use of rhymes makes the advice more appealing and memorable. Just to share with you, there is another slogan in my city: "Low crime does not mean no crime." "low" [leʊ] rhymes with "no" [neʊ] and that's probably how I am able to recall it instantly.