I happily put my lunch and drink in my City... but I only ever drink water, so that is not much of a concern.
However, lunch is always inside a zip-lock plastic bag.
If I've bought lunch and it has come paper-wrapped, I just roll the package up nicely inside the plastic carry bag it comes in and tie the ends securely, so no leaks or smells are likely.
As a rough guide, I love mayo and asparagus, and marinated sun-dried tomato in my sandwiches, and so far everyone who has sold my bags has never noticed any smells - or else for sure, they would have included that in their descriptions of my bag!
If anything, it is the perfume lingering from my scarves that have left a trace of fragrance behind.
I always keep a very lightweight, strong (it's like parachute silk) carry tote from Zomp, a shoe store that does waterproof versions in black and dark olive green and uses them instead of plastic or paper bags for their shoes, folded inside my Bbag (it folds to about the size of a baby's fist). That way, if I buy a slice of pizza for lunch, it goes into the Zomp tote bag (which gets thrown into the wash that night).