On a small plate, mix the crushed candy canes with an equal amount of red sanding sugar.
Wet the rim of each glass with a little pineapple juice, then dip in the candy cane and sugar mixture, turning to coat evenly.
In a pitcher, combine the pineapple juice and peppermint extract, stirring well; taste and add another drop of extract only if the mint doesn't come through.
Add the lemon-lime soda and stir once, gently, to keep the fizz.
Pour over ice into the prepared glasses and hook a mini candy cane over the rim of each.
Good to Know
Go light on the peppermint extract and add it in drops, not teaspoons, or the punch tastes like toothpaste instead of a candy cane.