Cook bacon in heavy pot over medium-high heat until brown and almost crisp. Transfer to paper towels and drain; discard drippings. Return bacon to pot.

Place beans in same pot. Add water, onions and garlic; boil 15 minutes. Reduce heat to medium. Add beer, cumin, coriander, sugar, chili powder and jalapeno. Cover partially and simmer 1 hour.

Add tomatoes to beans, cover partially and simmer 45 minutes. Uncover; simmer until beans are tender and mixture is thick, about 20 minutes. Stir cilantro into beans. Season with salt and pepper.