A judge has overruled this. I’m not a lawyer, so I won’t comment on the legality, what I will say is that in this case, I actually support Bloomberg. High doses of sugar and fructose contribute to obesity and the diabetes epidemic: they kill a lot of people. A lot more people than, say, marijuana. There’s very little difference, in harm, between processed sugar/fructose in large doses and cigarettes.
You could, of course, also tax it into the ground.
I would also put limits on plate size in restaurants, and would tax fast food very heavily, along with increasing the minimum wage to at least $14/hour. Get rid of ALL the corn subsidies and move them over to subsidizing small independently owned farms growing vegetables while taxing large corporate owned farms at higher rates (about half the remaining family owned farms in America went out of business during the last drought, I’m given to understand.) All of those things would have significant beneficial health effects. If you believe in markets (not free markets, there are no such things) you believe also that incentives have effects. Change the incentives and you change the behaviour.
Oh, and tax the heck out of lawns, which do nothing but waste water, and make it legal everywhere (by making it a requirement for a federally conforming mortgage) to grow and sell vegetables at your home.