Combine cream cheese and butter in a bowl and beat with a hand mixer until light and fluffy (alternatively you can mix them in a stand mixer with the paddle attachment).
Once the mixture is fluffy and combined, add in vanilla, followed by powdered sugar in ½ cup increments.
Add in the red food coloring last and mix until it reaches the shade you want. Alternatively, you can just mix some red food coloring into whipped cream cheese for a low sugar version of this recipe.