Line a baking sheet with parchment paper. Melt the butter in a large pot over medium heat. Add the marshmallows and stir until melted, then stir in the food coloring. Remove from the heat and stir in the cereal. Using oiled hands, form the mixture into 1/2-cup mounds, pressing until smooth. Transfer to the prepared baking sheet, press to flatten the bottoms and let cool.
Using kitchen shears, cut the orange licorice into thirty-six 1/4- to 1/2-inch pieces. Cut the yellow licorice into twelve 1/4- to 1/2-inch pieces. Put the frosting in a small resealable plastic bag and snip a corner. Attach the orange licorice to the cereal treats for beaks and feet and the yellow licorice to the tops for feathers, using the frosting to adhere. Attach the chocolate candies for eyes, using the remaining frosting.