I saw this little guy all over the net last year. I originally saw it on Jacolyn's blog here, and I decided it was the perfect Halloween gift for my friends with older kiddos. I added the green crazy straw to the mix, and I used electrical tape to create the face.
I think the ones I saw last year used permanent markers. I found these bottles of orange soda at the store for less than a dollar each, and I bought them because you can peel off the labels. Really, can you ever go wrong with a gift that has a crazy straw attached?