Powder company doubled allocation initially (5)
I believe the answer is:
cocoa
'powder' is the definition.
(I've seen this before)
'company doubled allocation initially' is the wordplay.
'company' becomes 'co' (abbreviation).
'doubled' says to double the letters.
'initially' says to take the initial letters.
The first letter of 'allocation' is 'a'.
'co' duplicated is 'coco'.
'coco'+'a'='COCOA'
(Other definitions for cocoa that I've seen before include "Warming bedtime drink" , "Bean used in making chocolate" , "Late-night drink" , "Medium to dark brown" , "Chocolate powder" .)