Health Minister Pete Hodgson has told his officials to draw up plans to get soft drinks out of schools by 2008.
It is the latest salvo in the Government's battle against a looming health crisis from obesity-related illnesses.
Officials say between 1500 and 3000 people could die over the next five years from obesity-related complications - but lives could be saved if there was swift intervention.
Schools - particularly secondary schools - earn money from drink sales, with more than half having contracts with soft drink companies.
The companies themselves say children should have the right to choose, and that more will be gained from good health education than from preventing students from buying their products at school.
Mr Hodgson said it was a "personal goal" to see schools soft drink-free in two years.
The national project is being modelled on the Waitemata District Health Board's initiative, which has already signed up 16 of the catchment's 28 schools.
"I just think that it's been a wonderful success, and I just don't see why we can't roll that out across the country within a couple of years.
"While it's notoriously difficult to predict the success of big public health campaigns, the advice I have is that by just 2011 a major drive to fight obesity could save the lives of between 1500 and 3000 New Zealanders," Mr Hodgson said.
This month Coca-Cola, PepsiCo and Cadbury Schweppes agreed to a voluntary ban of fizzy drinks in US schools, with all American schools to be soft drink-free by 2010.
Secondary Principals' Association president Graham Young said Mr Hodgson's plan would not affect schools financially and would be consistent with each school's food and nutrition policy.
The gap left would be replaced by healthier products, he said.
"Sensible policies, good health programmes and viable substitutions means that it doesn't necessarily need to be any loss of income, and we might have healthy people."
The Juice and Beverage Association said some of its members had guidelines on which products were sold in schools.
Some, such as Coca-Cola Amatil, stopped selling fizzy drinks in primary schools two years ago.
The association said: "It is unclear what the health outcomes of banning certain drinks would be, particularly considering information from members who report, on average, students are purchasing less than one can of sugar soft drink a week while at school.
"We believe school initiatives should be focused on all food and drink, as well as ensuring students are getting enough exercise."
Students would gain more in the long term from a healthy lifestyle and balanced diet.
But there was support from the Obesity Action Coalition's executive director, Celia Murphy.
"I think it's a very fine idea but I think we need to go beyond that ... soft drinks aren't the only offending things there."
Get fizzy drink out of school says Minister
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