This has to be one of the stranger Sonic the Hedgehog shaped items ever made! The plastic bottle is covered with a plastic coating to try and make it look like Sonic, rather than just having a picture of him on the bottle.
Maybe not the best move, he looks like a mutant bowling pin! This is by "Daddies" and is fairly recent, but Pre-Sonic-Adventure. Presumably the ketchup inside is red, as the "Colored Ketchup Fad" came along after 2000.