Scrub beets and trim tops to 1 in. Place in a Dutch oven and cover with water. Bring to a boil. Reduce heat; cover and simmer until tender, 25-35 minutes. Remove from water; cool. Peel beets and cut into fourths., Place beets in a Dutch oven. Add sugar, water and vinegar. Place spices on a double thickness of cheesecloth; bring up corners of cloth and tie with string to form a bag. Add to beet mixture. Bring to a boil. Reduce heat; cover and simmer 10 minutes. Discard spice bag., Carefully pack beets into 4 hot 1-pint jars to within 1/2 in. of the top. Carefully ladle hot liquid over beets, leaving 1/2-in. headspace. Remove air bubbles and adjust headspace, if necessary, by adding hot mixture. Wipe rims. Center lids on jars; screw on bands until fingertip tight. , Place jars into canner with simmering water, ensuring that they are completely covered with water. Bring to a boil; process for 35 minutes. Remove jars and cool.