Each pack contains two perfumed rolls of toilet paper, one yellow and the other white, which the company says on its online store can be used as giant streamers to welcome the 84-year-old pontiff to Madrid.
"Is there any better way to liven up the streets than using these large streamers with the Vatican’s colour-scheme? Open your windows to celebrate! Welcome Pope Benedict!" the company says on the site.
The 10 000 packs which the company has made cost $3.94 each and they feature a "I heart the Pope" logo that use a red heart symbol.
They are for sale in Renova's online store in the toilet paper section but the company's marketing director Luis Saramago said they should be seen as "giant streamers that could be used as toilet paper".
Sensitive to colour
"We are all very sensitive to colour. It is our way to contribute to the joy which will certainly be associated to this event," he added.
The pope will arrive in Madrid on August 18 to attend the last four days of the six-day World Youth Day celebrations.
More than one million faithful are expected to flock to the Spanish capital for the Roman Catholic Church's youth festivities.
Nearly 150 groups, including feminist and gay organisations, that oppose Pope Benedict's visit plan to protest on August 17 on the eve of his arrival.
Renova, based in Torres Novas located some 100km north of the Portuguese capital Lisbon, has a history of introducing novelty household products.
Among the items it has made in the past is toilet paper with moisturising lotion, multi-coloured paper towels and black toilet paper.