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Remove seeds and stems from peppers and roughly chop into 1-inch pieces. Place peppers in a food processor and pulse until peppers are all very finely chopped, but not yet pureed. Measure out 2 & ¾ cups of this pepper mixture.
Place 2 & ¾ cup chopped peppers, the sugar, and vinegar into a medium dutch oven or heavy bottom pot. Bring mixture to a full rolling boil, where it can't be stirred down, and boil for 1 minute, stirring.
Quickly stir in the pectin pouch and return to the full rolling boil for exactly 1 minute (use a timer to make sure it boils for the full minute). Remove the pot from the heat and skim off and discard any foam that has formed on the surface.
Ladle into clean jars and cool to room temperature, then seal the jars in their lids. You can use right away or store for later. (Proper storage and canning instructions are included in the article.)