In a medium saucepan, cover the beets with water and bring them to a boil. Cover, reduce the heat to a simmer, and cook until tender, 45-60 minutes.
Drain the beets, rinse them with cold water, and drain them again. Allow to cool until they are comfortable to handle, then trim the roots, peel off the skin, and thinly slice before packing into mason jars or other airtight storage container.
Combine the vinegar and sugar in a small saucepan and bring to a boil, then cook for 5 minutes. Remove from heat and stir in the seasonings. Pour over the beets, cover and allow to cool slightly, then refrigerate.
Discard the bay leaves after 1 hour, and allow the beets to brine at least 8 hours before serving.