There are three merchants in S. Figero that you can fight or steal cloths from. The one that you steal the cider from is in the basement in the pub where you found Shadow earlier in the game. Walk down from where the counter is and you will see the stairs. Talk to the merchant and he will accuse you of taking his cider and battle you. Whether you kill him or steal his cloths, IIRC, afterwards, you automatically obtain Cider.
Sometimes we must agree to disagree. Otherwise, we end up going in circles. Hey! I share Locke's last name. Just maybe he is my long lost brother??