Strong Asia sales spark growth in earnings for Treasury Wine Estates

China's thirst for luxury wine gave Australia's Treasury Wine Estates Ltd a surprise earnings boost, lifting profits above expectations and allowing its CEO to predict that the Asia unit will be its biggest by 2017.

A year after revealing a bribery crackdown was hurting China sales, the Penfolds maker surprised analysts on Wednesday by saying Asia pre-tax earnings leapt 54 percent in the year to end-June as it sold a quarter more product and revenue per case rose by a fifth.

The unexpectedly strong Asia result vindicates the strategy of new Chief Executive Officer Michael Clarke to beef up sales operations in the region and focus on selling more high-end labels.