1. - refers to a man's biological preserves. Naturally, the bag denotes the man's scrotal sack. One could say that a man's balls are the fruit of his loins. Therefore, only jelly could flow from them; 2. - man preserves.
Smitten Wife: This English Muffin needs something.
Devoted Husband: Gee, Honey, how about some jam, egg yolk, or butter?
Smitten Wife: Those sound okay but inadequate.
Devoted Husband: Oh, I know! How 'bout some bag jelly?!
Smitten Wife: Baby, you really know me!!!
Happily ever after..........