A beverage cooler carton is provided which is intended to receive ice or other cooling means to keep contents packaged therein cool. The carton is made of a material which is impervious to liquid which may be contained within the carton during use. The carton includes folding end panels which extend continuously between adjacent upper and lower panels; therefore, there are no seams or breaks in the material around a periphery of the carton which might degrade the ability of the carton to hold a liquid. Also disclosed is a method of assembling the cooler carton.