Warwick’s application to become a Fairtrade town was rejected after failing to fulfil requirements of the association.
But those behind the bid say they will not give up on plans to get the town accredited and help promote a fair farming message.
The Fairtrade ethos promotes a fair wage and conditions for farmers and growers across the world.
To achieve Fairtrade status a town must meet five criteria - having backing from the council, various approved products for sale, for its products to be used by community organisations, ongoing media coverage, and a committed steering group to continually develop ideas.
But as Warwick failed to satisfy two of these requirements - community backing and attracting adequate media coverage- it must look again at its campaign.
The application, which was supported by Warwick Town Council, will now be assessed so more can be done.
Angela Everitt from the Fairtrade steering committee said while it is a disappointing decision, plans are already in the pipeline for the future.
She said: “We were disappointed that the application was turned down, however we had really positive feedback and are seeing it as a blip rather than a setback.”
Plans for the coming months include market stalls, and involving schools in related competitions and promotional activities.
A statement from the group said: Becoming a Fairtrade town shows commitment of a community to support the ethical movement and using its licensed products.”
There are more than 600 accredited towns in the country, including Leamington.