Combine sugar and water in a pan and bring to a boil.
Boil for 1 minute and immediately reduce heat.
Simmer for 1 hour or until thickened.
Remove from heat and cool.
Pour sugar-water syrup into a sterilized quart-size bottle.
Add anise extract, vanilla and food coloring.
Stir gently and add the vodka.
Cover and let the mixture sit for 10 days to 2 weeks before serving.