Combine all ingredients except cranberries in medium saucepan. Bring to boil over medium-high heat, stirring until sugar dissolves. Reduce heat and simmer until reduced to 1 3/4 cups, about 10 minutes. Strain syrup into large saucepan. Add cranberries to syrup and cook over medium heat until berries burst, about 6 minutes. Transfer sauce to medium bowl. Cool. Cover and refrigerate until cold.

(Can be made 1 week ahead. Keep refrigerated.)