Place fresh cranberries, orange juice and water in a medium saucepan over medium heat.
Make a spice bag (see below). Wrap cloves, allspice berries and cinnamon sticks in a spice bag.
Place spice bag in the pot with the cranberries. Cook until cranberries begin to burst, about 10 minutes.
Stir in sugar and reduce heat to low. Continue cooking 5 minutes, or until all the sugar has dissolved.
Add Grand Marnier and cook 2 minutes more. (You can omit the Grand Marnier, but if you do, add a teaspoon of orange extract and increase the sugar to 2 cups.)
Remove from heat and allow to cool. Discard spice bag. You can serve this right away, but I recommend that you chill it in the refrigerator 8 hours or overnight before serving to allow the flavors to blend.