Place the bratwurst into a large skillet with 1 tablespoon of bacon drippings over medium heat; cook and stir the bratwurst until the pieces are browned and no longer pink inside, about 15 minutes. Drain excess grease.

Place remaining 1 tablespoon of bacon drippings in a large, deep pot over medium heat, and cook and stir the onion, green and jalapeno peppers, and garlic until the onion is translucent, about 8 minutes. Place the bratwurst into the pot with the vegetables, and stir in the sauerkraut, red beans, petite diced tomatoes, crushed tomatoes, tomato sauce, tomato juice, beer, salt, black pepper, cumin, chili powder, sugar, garlic powder, paprika, allspice, and oregano.

Bring the chili to a boil, reduce heat to a simmer, and stir in the milk chocolate until melted and dissolved. Simmer for 5 hours, stirring occasionally.