The most common and most likely answer to this crossword clue is the 5 plus 5 letter word BLOOD GROUP
I've seen this crossword clue in The Sunday Telegraph
B
L
O
O
D
G
R
O
U
P
More clues leading to the result BLOOD GROUP
Buddy explains!

The straight part
We know that "Type of red stuff" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case type of red stuff = blood group.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.