In groups we will produce confectionery (6)
I believe the answer is:
sweets
'confectionery' is the definition.
(I've seen this before)
'in groups we' is the wordplay.
'in' means one lot of letters goes inside another.
'groups' becomes 'sets' (a set is a group of things).
'sets' placed around 'we' is 'SWEETS'.
'will produce' is the link.
(Other definitions for sweets that I've seen before include "gobstoppers, say" , "Pieces of confectionery" , "Children's treats" , "Prohibited food for dieters" , "puds" .)