The paper assesses how the value added created by the existence of an organic label in a vertical chain is shared among manufacturers and retailers in the French uid milk market. Using a struc- tural econometric model of consumer substitution patterns and of vertical relationships, we show that organic label leads to a higher bargaining power in favor of manufacturer. Total margins are heterogeneous among products. They are lower for organic brands (37%) compared to conventional ones (52%). On the contrary, rms would bene t more from organic products than for conventional milk while our results suggest the opposite result for retailers.