In large saucepan, melt butter and marshmallows over low heat, stirring until smooth. Remove from heat. Stir in food color. Add cereal and small gummi candies; stir until well coated.
With buttered hands, shape 1/4 cup mixture at a time into 3-dimensional cones resembling trees. Cut out small star shapes from gumdrops with 1/2-inch canapé cutter. Press star onto top of each tree.