Wine – Atlantic island (7)
I believe the answer is:
madeira
I believe this clue is a double definition.
'wine' is the first definition.
(Madeira is an example)
'atlantic island' is the second definition.
(I've seen this before)
(Other definitions for madeira that I've seen before include "Cake - wine" , "Dessert wine from a Portuguese Atlantic island" , "Fortified wine from Atlantic island" , "Portuguese island off northwest Africa" , "Island in the Atlantic Ocean" .)