Mr Oxborough, who had worked for Lidl for over a decade, claimed he was dehydrated and forgot to pay for the water, describing his dismissal as "a huge overreaction".
Lidl's area manager, Karina Moon, found his explanations inconsistent and noted he had four days after the incident to report it but failed to do so.
The company maintained a zero-tolerance policy on consuming unpaid stock, stating it was essential for their operations and that rules must be followed by everyone.
An Employment Tribunal in Southampton upheld Lidl's decision, rejecting Mr Oxborough's claim for unfair dismissal.
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