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WASH collard greens, removing all grit. Remove and discard hard stems. Place greens together in small bunches; roll up. Cut crosswise into wide strips; set aside.
COOK bacon in large skillet on medium heat to desired crispness. Remove bacon from skillet with slotted spoon, reserving 3 Tbsp. of the drippings in skillet. Set bacon aside. Add onion and garlic to drippings; cook and stir until tender.
ADD greens, water, sugar, salt and crushed red pepper to skillet. Reduce heat to low; simmer 45 min. to 1 hour or until greens are tender, stirring occasionally. Stir in bacon.