In a 3 quart saucepan, cook bacon until crisp. Remove with slotted spoon. Cook onion in drippings until tender but not brown. Return bacon to saucepan. Add remaining ingredients and bring to a boil, stirring occasionally. Reduce heat. Cover and simmer 15 minutes.
Variation: Brown 1 pound ground beef with the bacon. Also, add a 14 1/2 ounce can whole tomatoes, 1/2 teaspoon ground cumin, 1 tablespoon chile powder and 3 small cloves garlic (crushed and sauteed with onion).