Wine drunk by little man before daylight (7)
I believe the answer is:
predawn
'before daylight' is the definition.
'wine drunk by little man' is the wordplay.
'wine' becomes 'red' (red is a type of wine).
'drunk by' is an insertion indicator.
'little man' becomes 'pawn' (I've seen this in another clue).
'red' inserted inside 'pawn' is 'PREDAWN'.
(Other definitions for predawn that I've seen before include "when the night is very far spent" , "Before the sun begins to rise" , "Before first light" .)