Tech showed perhaps the most simple way to do it.
My approach would require a few more steps and some additional geometry.
The end result would be something a bit softer and a little more realistic.
I should have time tomorrow to post a series of step by step series screenshots to get you started.
Once you get the hang of it, you can tackle some more difficult shapes.
Do you happen to have a better image of the wrapper? That would be helpful but not completely necessary.
If you look in the "tutorial" section of this forum you will find a 3 part series I did on sub-d modeling a leather chair.
It might be a bit more than you want to tackle now, but it's something you can play around with if you care to.