I usually step away, smile in a friendly way, and say, "I don't like hugs, sorry. I'm tactile intolerant."
Some of my very close friends I will hug briefly, they always let me control the length and "depth" of hug. I will give my son great big hugs, even though he is taller than I am now, and his voice is deep (I just am not in the least intimidated by him). I will quickly and gently bump shoulders with other people as a sign of affection (go up next to them, lean in and do a little bump). I also do high fives. Often holding a hand up for a high five short circuits people before they really invest in hugging.
Via text and online chat I engage in free hugging: *((((((((HUG))))))))*
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