Groups and Distribution Lists in Apple Contacts

I want set a preference email for a contact in a group. The process is to choose 'edit' and 'edit distribution list' from the menu. However, when the window opens, I do not get a list of groups. I only get the names of my email accounts.

In contacts, I have created groups (distribution lists) under each email account. The usage of groups works fine. I type in the group name in Apple Mail and all contacts show up - but then I have to go to each contact and select the proper email account when there are multiple.

My question, how do I get GROUPS to show up in 'Edit Distribution Lists' ?