A package with integral tracking device and method of forming includes a panel having an upper edge, an opposed lower edge and two side edges that form a flexible pouch. A tracking device is disposed within an air pocket formed in a seal. An opening means is integrally formed in the panel for accessing a product contained within the pouch. In another embodiment, the package is a container having a base wall and a side wall extending upwardly from an edge of the base wall. A cover removable encloses the container, and a valve is disposed in the cover for venting a gas from the container. The tracking device is disposed within an enclosed air pocket integrally formed in a base wall or a side wall of the container.