How to create menu items that sort posts by year?

Hi

I’d like to create a dropdown menu with the following structure. Any suggestions for an approach:

parent item (post category)
– sub item (posts in category from 2012)
– sub item (posts in category from 2011)
– sub item (posts in category from 2010)
– sub item (posts in category from 2009)
– sub item (posts in category from 2008)
– sub item (posts in category from 2007)

I’m running wp 3.3.1 with the f8-lite 1.2.1 theme running (know it’s an oldie)