Drunken Milo embraces mate (it's a tree) (3,4)
I believe the answer is:
oil palm
'a tree' is the definition.
(oil palm is a kind of tree)
'drunken milo embraces mate' is the wordplay.
'drunken' indicates an anagram.
'embraces' indicates putting letters inside.
'mate' becomes 'pal' (I've seen this before).
'milo' anagrammed gives 'oilm'.
'oilm' enclosing 'pal' is 'OIL-PALM'.
'it's' is the link.
(Other definitions for oil palm that I've seen before include "Give bribe, perhaps" , "Fat-yielding tree" , "source of cosmetic ingredient" .)