The smartphone game, which has been downloaded over half a billion times so far, is expected to do particularly well in the children's category.
"We anticipate this range to be especially popular for children’s parties and with 100 per cent edible images, they are perfect for children," says Chris Ferguson, retail manager of Ferguson Plarre Bakehouses.
The chain became interested in the Rovio phenomenon - which recently opened its first retail store in China - several months ago after observing the global phenomenon.
"We went straight to the source, [game developer] Rovio in Finland, to ask permission to use the imagery on our products and in November we were granted the license," says Chris.
In the first week of availability the stores received orders for more than 3,500 units of cupcakes with the imagery.
It now hopes to roll out Angry Birds birthday cakes shortly.
Ferguson Plarre is a family owned and operated business that is now in its fifth generation, with it's first site opening in 1901 on Melbourne's Lygon St.
It now has over 50 stores across the Victorian state and is celebrating its 110th birthday this year.