Last year I bought some cheap glass water bottles and got some glass pens from spotlight. I then googled words for water (eg Aqua, wai, H2O etc) and got my kids to write all the different words on the front of the bottles in the different colours before I baked them. I also gave two glasses with each bottle that had their names on them.
They looked really effective, cost buggar all but a little bit of time and we got loads of compliments about our useful gifts.

I have also done fudge, chocolate balls, shortbread and rocky road all met with appreciation.

This year I am planning on doing redskin vodka for everyone. I have just had a weekend away with the girls drinking this so I can definitely vouch for its yumminess.