WASH collard greens, removing all grit. Remove hard stems; discard. Place greens in small bunches; roll up. Cut crosswise into wide strips.
COOK bacon in large skillet on medium heat to desired crispness; remove bacon with slotted spoon. Drain skillet, reserving 1 Tbsp. of the drippings in skillet. Add onion and garlic to reserved drippings in skillet; cook and stir until tender.
ADD greens, water, sugar and red pepper flakes. Reduce heat to low; simmer 45 minutes to 1 hour or until greens are tender. Stir in bacon and serve.