In a 6-qt. stockpot, cook bacon over medium heat until crisp, stirring occasionally. Remove with a slotted spoon; drain on paper towels. Discard drippings, reserving 1 tablespoon in pan.
Add corn, red pepper and yellow pepper to drippings; cook and stir over medium-high heat until tender, 5-6 minutes. Stir in remaining ingredients until blended; bring to a boil. Reduce heat; simmer, covered, until thickened, 8-10 minutes.