The present invention provides a container suitable for providing insulation wherein the container has an inner shrink film liner. The sidewalls of the container, which can be made from paperboard or other suitable material, are vented to allow ambient air to freely flow through the sidewall of the container during activation of the shrink film with hot liquid or other suitable material. When the container is filled with material having a temperature of from about 130.degree. F. to up to about 212.degree. F., the shrink film is activated and the container provides excellent insulation, thereby allowing the container to be held in a consumer's hand for an extended period without causing burns or excessive discomfort. Methods of making this container are also provided.