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Cook bacon in a heavy-bottomed saucepan over medium heat until browned, about 5 minutes. Add onions and garlic and cook, stirring, until translucent and softened, 5 to 7 minutes. Drain excess bacon grease from pan.
Stir in remaining ingredients and reduce heat to low. Simmer uncovered, stirring occasionally, until reduced and thickened to a jam-like consistency, about 1 hour. Discard bay leaf.
Transfer to a blender and pulse to combine, leaving some chunks. Use immediately, or store in the refrigerator for up to 3 days.