Fellow embraces company and wine (5)
I believe the answer is:
macon
'wine' is the definition.
(macon is a kind of wine)
'fellow embraces company' is the wordplay.
'fellow' becomes 'man' (I've seen this before).
'embraces' is an insertion indicator.
'company' becomes 'co' (abbreviation).
'man' enclosing 'co' is 'MACON'.
'and' is the link.
(Other definitions for macon that I've seen before include "Dry white Burgundy wine" , "French wine region" , "Burgundian wine" , "red" , "Drink" .)