Taste the bagged sauerkraut before deciding whether to rinse it. If it is very sour or salty, drain it, rinse it briefly under cold water, and squeeze out excess liquid; for stronger traditional flavor, simply drain it without rinsing.

Cook the chopped bacon in a large Dutch oven or heavy saucepan over medium heat for 5–8 minutes, until browned and most of the fat has rendered. Add the chopped onion and cook for 4–6 minutes, until softened; use 1 tablespoon butter or oil if using lean bacon or no bacon.

Stir in the diced apple and cook for 2 minutes. Add the sauerkraut, broth, beer, or water, brown sugar, caraway seeds, bay leaf, black pepper, and optional Dijon mustard or dry white wine.

Bring the mixture just to a simmer, then cover the pot and reduce the heat to low. Cook for 30–45 minutes, stirring occasionally, and cook uncovered for the final 5–10 minutes if excess liquid remains.

Remove the bay leaf and taste the sauerkraut carefully. Adjust with additional brown sugar, pepper, or salt only if needed, then serve hot.