Place peppermint candies in a plastic bag. Use a rolling pin to smash candies into tiny pieces.
Place popcorn on a parchment-lined baking sheet.
Place milk chocolate wafers into a microwave-safe bowl and heat for 30 seconds. Remove from heat, stir, and heat again in 15-second increments until chocolate is smooth and fully melted. Repeat step 3 to melt white chocolate wafers.
Generously drizzle milk and white chocolate over popcorn.
Quickly add red and green sanding sugar, sprinkles and peppermint pieces on top. More is better because not all sprinkles will stick to chocolate.
Allow chocolate to cool and set for approximately 10 minutes.
Once set, break apart the popcorn and flip it over. Repeat steps 5 - 7 to coat the second side and cool.
Once the popcorn mixture is set, place 2 cups into each treat bag and tie it with a Christmas ribbon.