Kevin B. Smith
When you reshuffle the deck because it has run out, you shuffle the Kraken card into the deck.
To save a little time and effort, I just leave the card in the deck right from the start of the game. When it is drawn during the first pass through the deck, it just gets placed immediately on the discard pile and a replacement is drawn. Seems easier that way.
Sometimes we just play without the Kraken, as it seems challenging and a bit fiddly.