Although the TV chef needed 75% of Tesco shareholders to agree for his proposal to go through, he said before the meeting that 10% would be a good indication that there had been "significant shareholder movement on the issue".
Fearnley-Whittingstall, presenter of 'River Cottage' on Channel 4, wants the company to set higher minimum welfare standards for chickens including measures to reduce stocking density and to create a more stimulating environment to allow chickens to express natural behaviour.
The chef raised nearly £90,000, requested by Tesco so that the resolution could be sent to all 235,000 shareholders and voted on at its AGM today in Solihull.
After the meeting the chef said that he was delighted with the result and that 10% of shareholders was something Tesco could not ignore.
Tesco said before the meeting that it was proud of its welfare standards and that it exceeded government regulations and industry standards.
The retail giant asked its shareholders to vote against the resolution claiming that it would restrict choice for its customers and price out many of them.
After the meeting a spokesperson for Tesco said: "We're delighted that more than nine out of 10 of shareholders who cast a vote agreed with us that Hugh's motion was unnecessary and chose not to support it.
"Tesco is working actively to improve animal welfare and to keep chicken affordable for all our customers -- especially those who are struggling to balance the family budget in a time of rising household bills."
Corporate governance firm PIRC, which backed Fearnley-Whittingstall's resolution, said it had not expected to win the vote but that it had raised awareness of the issue.
In February this year Fearnley-Whittingstall and animal welfare groups criticised Tesco for cutting the price of its standard broiler chicken to as little as £1.99 in a special offer.
The chef also presented 'Hugh's Chicken Run' as part of Channel 4's documentary strand in January investigating chicken production, which also included celebrity chef Jamie Oliver's 'Jamie's Fowl Dinners'.