A small Portuguese town of São Lourenco do Bairro was painted red after two of its trucks accidentally spilled 2.2 million litres of red wine down a street.

The red wine flowed down a steep hill in the small town, near the coast of Portugal, after two tanks owned by Levira Distillery suddenly gave way on Sunday, September 10.

Firefighters said that a basement in a home near the distillery was flooded with wine.

Levira has since apologised, and said it later dredged the wine-soaked land.

'We assume full responsibility for the costs associated with cleaning and repairing the damage, having teams available to do so immediately.

'We are committed to resolving this situation as quickly as possible.'